1. Cycle-based coin selection rules
In a bull market, focus on altcoins for excess returns; in a bear market, hold onto Bitcoin (BTC) for safety. Cycle assessment is the prerequisite for profit.
2. Capture volume and price signals
A sudden increase in volume for a coin at the bottom often indicates that the main force is building a position. After confirming with K-line patterns, you can set up early.
3. The essence of trend trading
In an upward trend, when the price pulls back to key support levels like the 20-day or 60-day moving averages, it is the golden opportunity to buy low.
4. Restrain trading frequency
Capture 2-3 certain trends each month; frequent trading will only deplete your capital. Don't let volatility lead you by the nose.
5. The iron rule of position management
No single trade should exceed 30% of your position, and total holdings should not exceed 70%. Keep enough capital to deal with black swan events.
6. Execute stop-loss decisively
Do not average down on broken coins. Cut losses in time; letting profits run is the way to survive.
7. Dialectical analysis of news
Don't chase highs on good news, and don't panic on bad news. Use the news as a reference, but ultimately verify with technical analysis and capital flow.
8. Focus on your circle of competence
Don't touch what you're not familiar with! Deeply cultivate 1-2 mainstream sectors, which is 10 times safer than blindly chasing new coins.
9. Counter-intuitive operations
When the market is greedy, I withdraw; when the market is fearful, I enter. Use discipline to combat emotions to avoid the trap of chasing highs and selling lows.
10. Logic of altcoin speculation
After a sharp rise, there must be a pullback. An oversold condition does not necessarily mean a rebound. Beware of turning 'buying the dip' into 'taking over the position'.
11. Public sentiment warnings
When everyone in the group is showing profits, it often indicates the end of a trend; at this time, gradually reduce positions to lock in profits.
12. Holding cash is also a strategy
If you can't understand the market, take a break. It's better to miss an opportunity than to get stuck; wait for chances with over 70% win rates before making a move.
13. Traps of hot speculation
90% of short-term trends are schemes to harvest retail investors; an explosive rise without fundamental support ultimately leads to a mess.
14. Trading systems are paramount
Establish your own buying and selling rules (e.g., buy on moving average crossovers, sell on breaches), and strict execution is more important than prediction.
15. Mindset wins in the long run
Fluctuations in the cryptocurrency market are normal. Treat investing as a marathon; maintaining a calm mindset allows you to go further.
16. The nature of funds determines success or failure
Only invest idle funds; if you lose, it won't hurt too much. A stable mindset is essential for making rational decisions.
These are lessons learned from real money. If you find them useful, please like, bookmark, and follow me for more practical insights!