In the highly volatile cryptocurrency market, seeking 'stability' requires more wisdom and determination than pursuing 'speed'. A strategy that seems 'clumsy' is fundamentally based on counterintuitive thinking, strict risk control, and waiting patiently for opportunities. Remember the following survival rules:
Three prohibitions (Cornerstones of survival):
Avoid chasing highs and selling lows, act against the trend: Be extremely cautious when the market is frantically chasing highs, as deep panic selling may hide opportunities. Buy when no one is paying attention, and be prudent when everyone is chasing.
Avoid putting all eggs in one basket, diversify your approach: Never bet everything on a single cryptocurrency. Diversified investment is key to resisting black swan events and protecting capital.
Avoid fully invested all-in, leave room for maneuver: Never be fully invested! Retain flexible funds, as it shows respect for unknown risks and leaves space for capturing fleeting opportunities. Being fully invested binds your hands and feet.
Six rules (Essentials for short-term trading):
Be clear in waiting for the situation, reject gambling on unclear profits: Refuse to trade impulsively when the direction of rise or fall is unclear. Patiently wait for the trend to clearly establish; it is better to miss out than to make mistakes.
Follow the avoidance of horizontal markets, rest to recharge: During price stagnation, the direction is unclear, and forced trading incurs significant losses. Observe the changes quietly, and do not engage in unnecessary disputes.
Follow the rhythm of K-lines, with the yin giving birth to the yang: Continuous bearish candles indicate excessive panic or potentially hidden rebound opportunities (testing buying points); continuous bullish candles show exuberance, and one should be wary of the risk of pullbacks (consider taking profits).
Follow the speed of change, sharp declines easily lead to strong rebounds: The rate of decline indicates the strength of the rebound: a gradual bearish decline leads to a weak rebound; a waterfall-like sharp drop significantly increases the probability of a retaliatory strong rebound.
Follow the pyramid method, build positions to stabilize costs: Building a position is like stacking a tower: initially test with a small position when the trend starts to show, verify effectiveness and gradually increase the position, spreading out the risk of cost dilution. Start light, and increase gradually.
Follow the horizontal market changes, decide immediately upon breakouts: After a sharp rise and fall, there must be a period of horizontal consolidation. The end of horizontal movement is a turning point! If there is a valid downward breakout of key support, decisively liquidate and exit, do not hold onto hope.
The way of the cryptocurrency market lies in 'keeping simplicity'. The essence of this approach is to restrain greed and fear, strictly adhere to discipline and rules, seek stability amidst risks, and gain profits amidst volatility. Always remember 'slow is fast, less is more'. Seemingly clumsy persistence will ultimately surpass blind chasing. Only by keeping simplicity can one see the true essence.#币安HODLer空投ERA #币安钱包TGE
Want to delve deep into the crypto space but can't find direction? Want to quickly master information gaps? Click on my avatar and follow me! I share real-time updates and in-depth analysis, providing precise buying and selling points, keeping you updated on market dynamics!
