For newcomers in the crypto world, mastering these six iron rules will allow you to navigate the world of cryptocurrency trading with ease and manage risks!
1. Market fluctuations are unpredictable; mindset is key: Don’t hastily declare a peak during an uptrend, and avoid making definitive statements about a bottom during a downtrend. Just like whether Bitcoin can rise above $150,000 will only be revealed when the market is in a frenzy. What you think is the bottom may only be a temporary pause; the true bottom is always unfathomable.
2. Build positions in batches; stability is paramount: Experienced traders never rush to achieve success when building positions; they keep each buy or sell within one percent. This strategy allows them more opportunities to learn from mistakes, reduces costs, and minimizes risks.
3. Dare to chase highs; achieve the extraordinary: In the crypto world, fearing heights leads to misfortune. It's essential to understand that the main players' costs in any cryptocurrency are far more complex than you might imagine, including promotional costs, chip costs, development costs, etc. These can be several times or even dozens of times the initial investment. Therefore, daring to chase highs allows you to seize real opportunities.
4. Bull market turnaround; don't miss the opportunity: A bull market is the only chance for a turnaround. Just like Buffett, no matter how smart he is, if he misses the bull market, he can only wait silently in a bear market. Thus, in the crypto world, seizing a bull market is seizing the key to wealth.
5. Technical indicators are for reference only: Technical indicators often exhibit lagging characteristics; they should only serve as a reference and not the primary basis for buying and selling. While technical indicators may look good during a strong uptrend, prices are already high, so chasing after prices requires caution.
6. Full of confidence; unafraid of the market: True crypto trading experts are filled with confidence; they have experienced losses but have never been defeated. They firmly believe that they will ultimately conquer the market, and this belief is the key to their success.
Trading cryptocurrency is not just a contest of skills and luck; it is also a test of mindset and wisdom. Only those who master these iron rules and strictly adhere to them can remain undefeated in the crypto world!
