There is a very foolish way to trade cryptocurrencies, but this method can almost eat up all the profits. Do you want to learn?
First, when trading cryptocurrencies, we should never do three things:
The first thing is to never buy when prices are rising. Be greedy when others are fearful, and be fearful when others are greedy. Develop the habit of buying when prices are falling.
The second is to never place large orders.
The third is to never be fully invested. Being fully invested puts you in a very passive position, and this market is never short of opportunities. The opportunity cost of being fully invested can be very high.
Now, let’s talk about the six rules for short-term cryptocurrency trading:
The first rule is that after the price stabilizes at a high level, there is usually a new high. Similarly, after it stabilizes at a low level, it often reaches a new low. So, wait until the direction of the trend becomes clear before making a move.
The second rule is to avoid trading during sideways movement. Most people lose money in cryptocurrency trading because they fail to adhere to this simplest principle.
The third rule is that when selecting candlesticks, buy during downtrends when there are bearish candles, and sell during uptrends when there are bullish candles.
The fourth rule is that as the decline slows down, rebounds will also slow down, but when the decline accelerates, the rebound will also accelerate.
The fifth rule is to build positions using the pyramid buying method. This is the only constant in value investing.
The sixth rule is that when a cryptocurrency continues to rise or fall, it will inevitably enter a sideways state. At this point, there is no need to sell everything at the high, nor is it necessary to buy everything at the low. After consolidation, a trend change is inevitable. If the trend changes downward from a high, you need to clear your position in a timely manner. Just remember to act promptly.
Tonight, Old Bao will hold a conference. Whether it goes up or down, the community has already prepared a strategy. As for whether you want to seize this opportunity, it depends on you. If you want to get in, grab the chance now!
