After years of ups and downs in the cryptocurrency circle, witnessing countless cycles of rise and fall, I have distilled the blood and tears lessons into these 8 practical mantras:
1. Use morning market conditions wisely.
The morning session is the 'bare-faced moment' of market sentiment: if there’s a sudden drop, don’t rush to cut losses; it might just be a 'window for picking up bargains'; if it opens high and rises vigorously, don’t be greedy, locking in profits is the kingly way—if the morning surges strongly, there’s often hidden pullback risk.
2. Distinguish between real and false movements in the afternoon.
Don't get too excited during the afternoon surge; most of it is 'false fire'; chasing highs easily turns you into a 'bag holder'; if there’s a plunge in the afternoon, it’s better to hold your position and wait for the next day's low to position, as low-priced chips often hide after a pullback.
3. Don't panic at morning fluctuations.
See a big drop when you open your eyes? Don't rush to cut losses! Morning fluctuations are mostly 'smoke bombs'; market reversals happen in an instant; if it’s dead calm in the morning, it’s better to turn off the machine and sleep—hard trading during no volatility is equivalent to giving the exchange transaction fees.
4. Trading discipline determines life or death.
If you haven't reached your target price, selling is a loss (earning less is also a loss); if you haven't reached your psychological support level, buying is like 'catching a falling knife'. The consolidation phase is the most chaotic; trading at this time is like 'shooting arrows with closed eyes', hold your hands, and wait until the direction is clear before taking action.
5. The Yin-Yang candlestick hides secrets.
Buy on bearish candles, sell on bullish candles—this classic never goes out of style: a bearish candle indicates 'chip price dumping', if not now, then when? A bullish candle is the 'short-term emotional peak', locking in profits is the wise choice.
6. Seek opportunities through contrarian actions.
When others are greedy, I am cautious; when others panic, I am greedy. When the market is collectively euphoric, maintain a bit of calm; when the community is collectively bearish, dare to reach out and position—niche opportunities often hide in 'anti-consensus'.
7. Be patient during the consolidation phase.
High-level consolidation and low-level fluctuations test your mindset the most. The more anxious you are, the more mistakes you make; it’s better to lay flat and observe—wait until the breakout signal is clear (volume surge upward or breakdown downward), then strike hard, doubling your winning chances.
8. Be decisive at the end of a surge.
A sudden surge after a period of consolidation? This is the 'final carnival'! Don't hesitate, sell first as a courtesy—locking in profits is the real deal; greed will only lead profits to 'water in a bamboo basket'.
Trading in the cryptocurrency circle is essentially 'human nature game + discipline execution'. Remember: the market is always there, opportunities are daily, preserve your capital and stick to discipline to survive longer in this zero-sum game.