After nearly 7 years, my personal account has surged from 300,000 to 10 million, and the subsequent breakthrough seemed to happen overnight, rushing to the 60 million U mark.
During this journey, I have distilled 5 golden rules, concise yet profound.
If you intend to cultivate in the cryptocurrency world for the long term, this article will surely benefit you greatly, and you may feel enlightened after reading it!
1. The way to trade cryptocurrencies lies in selecting strong coins and closely following upward trends. For coins in a downward trend, we choose to turn a blind eye, as time is precious and it's unwise to wrestle with the main forces. If a coin remains above the trend line, patient holding is the best strategy. For example, during the AI craze earlier this year, as long as it does not break the 30-day moving average, hold with peace of mind. Once it breaks below, exit decisively.
2. The main trend serves as the guideline. When the market is good, there must be a main trend leading the way. If the main trend is weak or absent, it means the risks outweigh the opportunities. At this time, it is wise to observe changes quietly and wait for the main trend to reveal itself, and do not act rashly.
3. Diversified investment is also necessary in cryptocurrency trading. Even if you are optimistic about a certain coin, do not bet all your funds on it. Learn to allocate your investments, and the number of coins held should not exceed four to mitigate risks.
4. Frequent trading is not only unhelpful but can also lead to financial loss. In cryptocurrency trading, avoid the urge to trade out of impatience; feeling uneasy after a day of no trading is common. Frequent operations may bring temporary pleasure but will ultimately lead to heavy losses, with only brokers benefiting. If you lack the skills for short-term trading, do not attempt to become a major player.
5. After significant losses, one needs to rest; after big gains, one must be even more cautious. After a large loss, one's mindset is easily affected, and it’s important to understand the psychology of revenge trading to avoid blindly trying to recover losses, which is a gambler's mentality and should be avoided. After a big gain, emotions can run high, leading to a loss of caution. Thus, a big gain is often followed by a significant loss, so one must remain vigilant at all times.
