Trading cryptocurrencies sometimes requires the simplest methods to be the most effective.
However, on this path, 90% of people cannot endure.
To be honest, over the years, I've seen too many people blow up, run away, and leave the scene in disarray. It's not that they lack ability, but they constantly make three fatal mistakes:
First, chasing the 📈 to buy. When the price of a coin 📈, they get anxious, thinking "this wave is definitely going to soar", but as soon as they buy, it 📉; conversely, when everyone is panicking and selling, no one dares to take action. Only by making “buying during 📉” a habit can one truly benefit from the market cycle.
Second, placing bets too heavily. They think that if they are right about the direction, they can make a fortune, but a slight shake from big funds and a few sharp “needles” of ups and downs can easily wipe them out.
Third, going all in. When emotions run high, they invest everything, and even if they guess the trend correctly, they cannot flexibly adjust their positions and end up watching good opportunities slip away, unable to act.
Ultimately, the harshest reality in the crypto world is: you don’t lose to the market, but to your own bad habits.
I have summarized a set of six-word principles for short-term trading. The simpler the reasoning, the more easily it is overlooked:
1. High positions in consolidation are not over yet; new highs are often still to come; low positions in consolidation have not bottomed out, and new lows may easily occur. Don't act before the consolidation changes.
2. When the market is in a horizontal consolidation, never enter. Most people exhaust their patience in the fluctuations.
3. Buy when the daily line closes in the red and sell when it closes in the green. Following market sentiment is much better than guessing on your own.
4. Slow declines lead to lower rebounds; fast declines have the potential for sharp rebounds. Understanding the market rhythm reveals the opportunities.
5. Build positions in a pyramid style, entering in batches, and always keep reserve funds.
6. After significant rises and falls, there will definitely be consolidation, and once consolidation is done, it will change again. Don’t go all in at high points, and don't invest everything at low points; wait for signals to decide how to act.
The market has never lacked opportunities; what it lacks are those who can stabilize, endure, and survive.
If you can do these, the path of trading cryptocurrencies will broaden. You always think experts are just lucky, but in fact, they apply simple methods thoroughly.