A super stable and silly method for trading cryptocurrencies that ensures you make a profit without any loss. There is a particularly silly but reliable method that can help you grasp all the profits, but you'll need to ponder it slowly. When trading cryptocurrencies, there are three things you must absolutely avoid.
The first thing is to never buy when the price is rising; you need to learn to buy boldly when others are scared to death, and to be cautious when others are frantically buying. Develop the habit of buying during a price drop.
The second thing is not to invest all your money in a single trade.
The third thing is to avoid operating with a full position. If you do, you become passive. There are plenty of opportunities in the market; with a full position, the opportunity cost becomes high.
Now, let’s talk about a few tips for short-term cryptocurrency trading:
First, don’t rush to buy when the price is high; it might rise a bit more. Similarly, don’t rush to sell when the price is low; it might drop a bit more. Wait until the direction is clear before taking action.
Second, don’t trade when the price is moving sideways. Many traders end up losing money because they can’t manage this.
Third, look at the candlestick chart: try buying during a bearish candle and consider selling during a bullish candle.
Fourth, if the price is dropping slowly, the rebound will also be slow; if it’s dropping quickly, the rebound will be vigorous.
Fifth, build your position according to the pyramid method; this is an old rule of value investing.
Sixth, if a cryptocurrency rises sharply or falls dramatically, it will definitely move sideways for a while afterwards. At this time, don’t sell everything at a high point, nor buy everything at a low point. Once the sideways movement ends, there will be a trend change. If it starts to drop from a high point, you need to clear your position quickly.
