Trading cryptocurrencies is actually very bloody; the truth that remains unchanged in this market is that for every two profits, there are seven losses. If brothers are currently in a stage of loss and confusion,
and if your capital is within 500,000 and you want to quickly open up a situation in the crypto world through short-term trading, please read this post carefully. After reading, you will realize the essence of trading.
Control your desires; knowledge and action should be one.
Everyone has greed, anger, and ignorance. When the market rises, one always wants to earn more; when the market falls, one begins to play dead and is unwilling to admit defeat. After struggling hard to break even, one becomes a cowherd. In this market, if you have no principles, you will definitely be influenced by the market makers and your own emotions. My principle is that each loss must not exceed 5% of the principal, and if I make a profit, it should be at least 10-30%. Once a profit exceeds 20%, I begin to take profits; at least I must ensure that I do not incur a loss in that trade. Even if your win rate is only 50%, after 100 trades, your return will reach 800%.
Is it difficult? The difficulty lies in human greed and fear. Knowledge and action should be one.
Concentrate your investments and learn to hold cash.
The biggest pain point for retail investors: not knowing how to hold cash, weak investors averaging down, little capital but many coins, stubbornly holding onto losses. If your capital is below 500,000, do not exceed 3 coins; if above 1 million, control it to a maximum of 5 coins. Those with large moving averages trending down, weak coins, and not on mainstream tracks should be eliminated. Acknowledging your mistakes may require great courage, but admitting your errors is the beginning of our success.
Those who can buy are apprentices; those who can sell are masters; those who can hold cash are the ancestors.
When the market is bad, you must be able to control your hands. But when you truly believe in something, you must dare to invest heavily. In fact, most profits in the investment market come from just a few good coins.
My 60% of funds never exceed 5 coins (BTC/SOL/ETH/BNB/DOGE), even in a bull market. 20% is allocated to the leading coins in bull market sector rotations, and the remaining 20% is always held in cash, waiting.
Volume and price are the only indicators that do not lie.
Return to basics; mastering volume and price is enough to let you outperform 80% of traders.
A volume breakout often means the involvement of funds, and there will generally be a big market movement. A volume of 0.5 indicates significant contraction; a new high on reduced volume indicates a high degree of control by the main players, eliminating the possibility of them dumping their holdings. In an upward trend, it is highly likely that one can profit.
If a coin's increase exceeds the previous day, and the volume ratio is less than 1, it indicates there is still considerable room for growth, and the probability of rising again the next day is extremely high. Conversely, if the volume is 1.5 times and it meets resistance at a certain level, it often signals an impending peak. Studying volume must be combined with price; understanding the forces of bulls and bears is key to grasping the fundamentals of volume and price.
A sharp decline is a touchstone for a coin.
In a bull market, a sharp decline presents a buying opportunity and is also a great time to select coins. If the overall market crashes but your coin only declines slightly or doesn't fall at all, it clearly indicates that there are funds holding together, refusing to drop. Therefore, such coins can be held with confidence; they will yield returns.
If the overall market crashes and your coin plummets, but the next day the market rises and your coin surges, it is likely that the main players are using the overall market's decline to wash out weak hands. If the coin has good characteristics, you can buy it during the market crash and sell it during the market rise for short-term profit.
Trend is king; go with the trend.
Once a trend is established, it will not easily change. Novices die trying to catch the bottom, while experts die trying to catch the top. The wisest choice is to not guess, not predict, and not assume, but to follow the trend. If you cannot judge the trend, look at the moving averages. When all moving averages are arranged at a 45-degree angle and pointing upwards, it is difficult for such a coin to lose. If you are trading short-term, you need to watch the 5-day moving average; as long as it does not break below it, it remains strong. The lifeline for wave trading is the 60-day moving average; coins in an upward trend often have at least short-term opportunities when they first drop to the 60-day moving average.
Buy when there is divergence; sell when there is consensus.
This is similar to the previous Ethereum ecosystem sector; once Ethereum rises, there will definitely be divergence because the main players want to take profits when everyone is willing to take over, cashing out at high levels. Therefore, it is said that you should sell when there is consensus.
Buying on divergence and focusing on strong coins follows the principle that the strong remain strong. A coin can become strong or a 'monster coin' only if it is favored by the market's funds. Once someone sells this coin, more people will buy it, and it can continue to rise, which is often reflected in the K-line pattern as a reversal after an initial decline.
When trading is not going well, you must remain calm.
The difficult path is not one that everyone is qualified to walk. Only those who can endure the pain of rebirth deserve the beauty of a new life. How many people have suffered great losses just like I did? When I entered the crypto world in 2017, I lost so much I couldn't find my way. I am very grateful for this experience because I got back up, and I believe I won't fall again. In fact, when trading is going smoothly, it is even more important to be low-key. Before the first half of 2017, my funds had already exceeded a million, but there was little money, and I was quite high-profile. The result of being high-profile will only make you blindly arrogant and gradually lose awareness of risk.
Why did I choose to trade? I was born into poverty and cannot die in destitution. I don't know how many people are like me, coming from rural backgrounds, wanting to change their fate. I made my first bucket of gold in internet finance, and after entering the crypto world in 2017, it seemed tailor-made for people like us. It doesn't require socializing or bowing down. If you have the ability, it becomes your ATM. If you don't, then you must bear the consequences you anticipated. The crypto world is very fair. Of course, all breakthroughs and transitions are painfully difficult, but every failure is a step towards achieving financial freedom in life.
#BTC #ETH #sol #Strategy增持比特币