In the cryptocurrency market, only a few people can make money, and it’s even more extreme than elsewhere. In this highly volatile environment, those who survive are often not the most skilled technically, but those who make the least mistakes. Many times, those seemingly 'foolish' methods are actually the most stable. Remember, don’t chase trends, don’t gamble on directions, don’t bet heavily; survive first, then you qualify to talk about winning!
1. Three things not to do in crypto trading.
1. Don’t bet against the trend; "When others are fearful, I am greedy" needs to be applied correctly.
Don't let emotions lead you; follow the trend instead. When the market is falling, the community is full of curses, and mainstream media is bearish; that's when it's a good time to buy in batches. When prices rise to a peak, and the group is full of bullish voices, and cryptocurrency TikTok is full of praise, that's when you should cash out. Don't fight against emotions; following the trend is the way to go.
2. Don’t heavily invest; keep some liquidity for survival.
Many people like to put all their funds in one direction; with the slightest market movement, a single needle can send you soaring. Especially with high leverage, liquidation can happen in an instant. I tell you, always keep a "lifeboat" in your account, or you won’t know how you died.
3. Don't hold all positions, don't cling to battles.
Being fully invested is the easiest mistake for retail investors. It seems like confidence in a certain cryptocurrency, but in reality, it’s being blinded by greed. When the market corrects, there's no money to average down, and when opportunities arise, there's no money to switch, ultimately waiting passively for death. I suggest not to exceed 20% in a single cryptocurrency, and to keep at least 30% cash flow in your account to handle various situations.
Second, the six phrases help firmly grasp the practical rhythm.
1. Don’t short in high sideways markets; don’t enter in low sideways markets.
During high sideways trading, don’t easily short; the main players might be building up strength. During low volatility, don’t blindly bottom fish; there might still be a sharp drop at any moment. Before the trend is established, don’t make subjective guesses, or you won’t know how you died.
2. Long sideways markets must change; it’s better to stay in cash and wait for signals.
During sideways trading, the transaction fees and psychological costs are incredibly high, far exceeding the potential profits. Wait for signals, watch moving averages, and follow trends to double your win rate. Don’t mess around during sideways trading, or you won’t even know how you lost.
3. Buy on the downside and sell on the upside, follow emotions and go against the rhythm.
When the daily line closes with a bearish volume reduction, it might be a washout; at this time, it's good to buy in batches. When the daily line closes bullish and then pulls back, remember to secure your profits. This isn’t bottom fishing; it’s planned entry, don’t mess around.
4. Don’t touch slow declines; grab sharp declines.
A slow decline is a bottomless pit; a sharp decline is a rebound window after panic release. Catching flying knives requires skill; don't pick up knives while going down the stairs, or you won't know how you died.
5. Use the pyramid building method; lowering the average price isn’t just about luck.
First investment 30%, buy 20% more after a 10% decline, and buy 10% more after a further 15% decline. Buying more as prices drop isn’t blind faith but discipline killing greed. Don’t be swayed by emotions; follow discipline to survive longer.
6. Understand trend continuations; catching the next wave is real skill.
After a one-sided market, there must be consolidation; after consolidation, it’s likely to continue in the original direction. Act when breaking the range, don’t guess highs and lows in the consolidation zone. The consolidation period is for laying out plans, not for gambling on size, so don’t mess around.
Slow is fast, and less is more. The cryptocurrency circle amplifies human nature; the more you want to double your investment overnight, the more likely you are to lose everything. First survive, then make money; first learn to avoid mistakes, then talk about seizing opportunities. This market is never short of opportunities; what it lacks is the calm, restraint, and that small group of people who can withstand loneliness.
#长期持有策略
I will continuously lay out my strategy orders; rather than blindly exploring myself and failing to grasp the best entry and exit points, leading to losses, it's better to recognize this and follow me directly.