How to navigate the cryptocurrency world? Just remember these few phrases!
1. Short-term trading
1. Focus only on the top ten mainstream cryptocurrencies daily, based on current market trends, news, daily MACD golden crosses, BOLL contractions and expansions, and consider the overall market trends to select highly volatile assets for trading.
2. Manage your position well:
Divide 50,000 into 20%, which is 5 parts, and take one part to build your position each time.
3. Never go all in; at most 50%, always keep 50% in reserve for opportunities.
4. Do not make more than 3 trades in a day; you need to manage your actions.
5. Never average down; if you enter a position and it loses 30%, withdraw immediately, as this indicates that the entry timing was wrong.
6. Set a stop-loss at 30%, and if it breaks, exit unconditionally; don’t hold onto losing positions, as it will lead to greater losses.
7. Never get emotionally attached to candlesticks; enter and exit quickly, remember!!!
8. Follow the trend; trends are king, only trade mainstream assets, not low-quality altcoins!
2. Life-saving mantras for cryptocurrency (recommended to memorize):
1. Don’t rush to exit during a morning drop; generally, there will be a rebound in the afternoon!
2. Reduce your position during a significant afternoon rise; there’s a high probability of a pullback in the evening!
3. Volume contraction during an uptrend means it will continue to rise; volume contraction during a downtrend means it will continue to fall.
4. Major conferences or positive news usually lead to increases, but once the event is over, prices will fall.
5. If there’s a continuous drop during the day in the domestic market, it’s time to buy the dip; at 21:30, foreign traders will likely push the prices up.
6. The key signal for buying and selling is the price spike; the deeper the spike, the stronger the buy/sell signal.
7. When you hold a large position, you will definitely face liquidation; why? Because you are on the exchange’s watchlist for liquidation.
8. After you complete your stop-loss on a short position, it will definitely drop; if it doesn’t trick you into exiting or liquidate your position, how could it fall? For example, TRB.
9. When you are almost out of a loss, and just a bit more, the rebound suddenly stops; how could they let you exit and run away?
10. When you take profits, it will lead to a pullback; if you don’t exit, how can they push the prices up? The vehicle is too heavy.
11. When you are excited, a massive drop will come as expected; your excitement is also a trap set by manipulators.