Insights from my days in the crypto world! For friends who have just entered the market
1: Don't get attached to hot coins; when altcoins reach a certain profit, you should sell them. Trying to ride the wave from start to finish is bound to end in disappointment. The reasoning is simple: altcoins cannot keep rising forever, and when they peak, you must sell. Otherwise, you will fall back to where you started and end up working for nothing. For example, FIL and LUNA from back in the day.
2: After a high-level consolidation, be ready to sell when the opportunity arises; if prices consolidate at a low level and hit new lows, it's likely a great opportunity will appear. When the price breaks new highs after consolidating at high levels, be wary of the main force trying to lure in buyers; don't hesitate to reduce your position or exit. Conversely, when the price consolidates at low levels and hits new lows but quickly rebounds, it's likely the main force is doing a final wash, and you should remain steadfast and not waver.
3: When the market environment is poor, prices may rise against the trend; small rebounds in a downtrend can lead to significant increases. Conversely, when the market environment is good, prices may slightly drop against the trend, and small declines can lead to significant drops.
4: Only increase your position when making a profit, and don’t average down when losing. This might challenge the understanding of many seasoned traders. Our positions should increase when the price breaches previous highs, not when it's consistently dropping. Averaging down will only result in greater losses and eventually paralyze you. You must stop the losses and let profits run.
5: As long as you identify the bottom price, you will generally see a 2-up, 1-down pattern in price increases. At this point, don’t doubt it; usually, significant surprises follow. Especially during a trending rise, prices often increase while undergoing consolidation—don't get off the train too easily.
6: Top traders look at sectors first, average traders look at individual coins, third-rate traders look at indicators, and bottom-tier traders just gamble. This means that when we buy a certain coin, we should first examine its sector. Only by engaging with hot sectors can we attract more attention and increase our win rate. Next, we look at the tokens; focusing solely on indicators indicates you're a novice, while those looking at everything are gamblers.
7: In an uptrend, look for support; in a downtrend, look for resistance. When prices are on an upward trend, operating based on support lines has a high success rate for buying on dips. In a downtrend, working with resistance lines also has a high success rate, providing opportunities to short or exit.
