The dumbest way to trade cryptocurrencies is often the most effective.
But this path, 90% of people cannot stick to.
To be honest, over the years, I've seen too many people blow up their accounts, exit the market, and leave in disgrace.
It's not that they lack talent, but they keep making three fatal mistakes:
First is buying on the rise.
When the coin rises, they get greedy, thinking "this wave can soar," but as soon as they buy, it crashes,
while no one dares to buy during genuine panic selling.
Only those who can make "buying on the dip" a habit are truly reaping the benefits of the cycle.
Second is over-leveraging.
Thinking that if they are right about the direction, they can make a fortune, only to be shaken by the main players, get hit a few times, and be wiped out.
Third is going all in.
When emotions rise, they go All in, even if they guessed the trend correctly,
it becomes impossible to flexibly adjust positions, missing out on real opportunities while just watching.
In the end, the cruelest thing in the crypto world is:
You don't lose to the market, but to your own habits.
I have summarized a set of six principles for short-term trading, the simpler the truth, the more it is overlooked:
1. High-level consolidation is not over; new highs are often still ahead; low-level sideways trading has no bottom and may easily make new lows. Don't act before the market changes.
2. Stay still during sideways trading; absolutely do not enter the market. Most people lose their patience in the fluctuations.
3. Buy on bearish daily closes and sell on bullish daily closes. Following the market sentiment is much better than just guessing.
4. If it falls slowly, it won't bounce high; if it falls quickly, it will have a sharp rebound. Only when you clearly see the market rhythm can you spot opportunities.
5. Build positions in a pyramid style, enter in batches, and always keep some bullets in reserve.
6. After a big rise or fall, there must be consolidation, and after consolidation, there will definitely be a market change. Don't go all in at the high points, and don't go all in at the low points; wait for signals before making life-and-death decisions.
The market has never lacked opportunities; what it lacks are those who can stay steady, endure, and survive.
If you can do these, the path of trading cryptocurrencies will become broader.
You always think that experts have good luck, but in fact, they just apply their simple methods ruthlessly.
