The dumbest way to trade cryptocurrencies is often the most effective, but 90% of people can't stick to it.
To be honest, over the years I've seen too many people blow up their accounts, leave, and walk away in disgrace,
not because they lack talent, but because they keep making three fatal mistakes:
First, buying on the rise.
When the price goes up, they get greedy, thinking "this wave can fly," but as soon as they buy, it drops,
while no one dares to buy when the real panic selling happens.
Only those who can make "buying on the dip" a habit are truly reaping the benefits of the cycle.
Second, over-leveraging.
Thinking that being right about the direction means huge profits, but then they're shaken out by the big players, and wiped out in an instant.
Third, going all in.
When emotions run high, they go All in, even if they guess the trend right,
they can't flexibly switch or adjust their positions, missing out on real opportunities while just watching.
Ultimately, the cruelest thing about the cryptocurrency world is:
You’re not losing because of the market, but losing to your own habits.
I’ve summarized a set of short-term trading principles in six words, the simpler the principle, the more it’s overlooked:
1. High consolidation is not finished, new highs are often still to come; low consolidation has no bottom, and is easy to create new lows. Don’t act before a trend change.
2. Stay put during consolidation, never enter the market. Most people lose patience during fluctuations.
3. Buy on daily bearish closes, sell on bullish closes. Following the sentiment is far better than guessing.
4. Slow declines do not lead to high rebounds; rapid declines lead to swift rebounds. Only by clearly seeing the market rhythm can you spot opportunities.
5. Build positions in a pyramid structure, enter the market in batches, and always keep some bullets.
6. After a big rise or fall, there must be consolidation, and after consolidation, there will definitely be a trend change. Don’t go all in at the highs, and don’t go all in at the lows; wait for the signals to decide your fate.
The market is never short of opportunities; what it lacks are those who can stay steady, endure, and survive.
If you can do these things, the path of trading cryptocurrencies will become broader.
You always think the experts are just lucky, but in fact, they’re using their dumb methods with enough determination.
