Eight Major Principles of Cryptocurrency Trading, A Must-Read!
The cryptocurrency⭕master understands the knowledge of wealth; these eight principles should not be missed.
1. When trapped, add to your position to protect your capital; seeking profit is greed.
When trading cryptocurrencies, there will always be a few coins that get you trapped. At this time, remember not to foolishly hope to turn losses into gains; chasing quick profits will only deepen your predicament. Honestly add to your position to protect your principal, so you can have steady returns.
2. Calm surface hides high waves; beware of the big waves that follow.
The cryptocurrency market may seem calm on the surface, but there are hidden currents. Do not be deceived by the small price increases in front of you; stay alert and guard against the upcoming turbulence.
3. After a big rise, there must be a correction; the K-line will form a triangle over several days.
When the price of a coin skyrockets, do not become overly excited. Because after this, there will inevitably be a correction. Look at that K-line; isn't it forming an equilateral triangle over several days?
4. Buy on the dip, not on the rise; sell on the rise, not on the dip; moving against the market is heroic.
When buying coins, you should choose the time when prices are falling; when selling coins, it should be when prices are rising. Going against the trend can lead to extraordinary success.
5. Don’t sell on high, don’t buy on a plunge; don’t trade in a sideways market.
When the price of a coin spikes, don’t rush to sell; when it plunges, don’t rush to buy. During a sideways market, it is even more important to hold back and observe the changes.
6. Look for support levels in an uptrend, and resistance levels in a downtrend.
When prices are rising, pay attention to support levels to prevent a pullback. When prices are falling, pay attention to resistance levels to facilitate bottom fishing.
7. Full position trading is a major taboo; going against advice is unwise; know when to stop with constant changes, and enter and exit freely while observing.
Never operate with a full position or bet everything. The cryptocurrency market is unpredictable, so learn to take profits; enter and exit freely. Observing changes can help seize the best opportunities.
8. Cryptocurrency trading is about mindset; greed and fear are major threats.
Be cautious when chasing price fluctuations; stay calm and at ease. In cryptocurrency trading, mindset is crucial. Greed and fear are our greatest enemies; avoid chasing prices and maintain a calm mindset.
