🔥🔥The Dumbest Way to Make Money in Crypto Trading: Three Don'ts + Six Must-Knows, What Investors Fear Most is You Learning This!
In the crypto world, those who truly make big money are often not the 'smart people,' but those who stick to simple and dumb methods. Today, I will share an extremely simple crypto trading strategy. As long as you can execute it well, even investors will fear you!
Three Major Taboo in Crypto Trading: Make One Mistake, Lose for Three Years!
1. Chasing Highs and Selling Lows:
Never enter the market when the market sentiment is at its highest! When the price rises to a point of overwhelming positive news and the group is in a frenzy, that's when investors are quietly offloading their assets. Remember, the greatest opportunity arises when the market is at its most fearful.
2. All In on One Coin:
Don’t put all your chips on one coin. Keep 30% cash on hand, so when the market crashes, you can enter at the bottom. That's when you are truly 'buying the dip while others panic.'
3. Full Margin Trading:
In the crypto world, there are always more opportunities than there is money in your hands. Full margin = losing adjustment space. Once the market reverses, you can only watch helplessly as you get liquidated. Professionals understand the importance of managing their positions to control risk!
Six Practical Short-term Trading Maxims: Each Move is Fatal!
1. Consolidation Must Change:
After a long period of lateral movement, the price must fall; after a long period of consolidation, the price must rise. High-level consolidation is a false breakout to lure buyers, while low-level fluctuations are false downward moves to scare sellers. Don't act rashly before confirming the direction!
2. Lateral Movement = Liquidation Trap:
Real liquidation does not happen during big rises or falls but when there are frequent wrong directional trades during sideways movement. If you can’t determine the direction, stay out of the market, and don’t click your mouse aimlessly.
3. Buy on Bearish Candles, Sell on Bullish Candles:
A big bearish candle is not the end of the world, but an opportunity. Enter the market when there is panic and exit when there is greed; when others are panicking, you remain calm, and you can become the winner.
4. Rapid Decline = Energy for Rebound:
Slow declines are easy to get trapped, while rapid declines are more likely to result in a V-shaped reversal. When you see a panic sell-off, it’s time to decisively catch the falling knife instead of running away.
5. Pyramid-style Position Building:
For every 10% drop in the bottom area, increase your position by 10%, stabilize your costs, lower your risks, and roll in profits. This is a strategy commonly used by institutions and is reliable.
6. Lateral Movement Clearing Rule:
After a surge, lateral movement = investors offloading, decisively take profits and secure your gains;
After a crash, lateral movement = loosening of chips, decisively cut losses and don’t linger.
Take profits when you should, cut losses when you must, be quick, precise, and ruthless!