The dumbest way in the crypto world is the most profitable path
To be honest, over the years of trading cryptocurrencies, I've seen too many people get liquidated, exit the market, and leave in shame,
not because they lack talent, but because they keep making three fatal mistakes.
First, chasing after price increases.
When the price goes up, they get greedy, thinking "this will soar," but as soon as they jump in, the price crashes,
when it really plummets, no one dares to buy.
Those who can make it a habit to "buy when it falls" are truly benefiting from the cycle.
Second, holding on too tightly.
Is the direction right? Useless!
As long as the big players shake things up a bit, with a few spikes, they can wipe you out.
Those who don't know how to leave some margin for themselves are destined to only play one round of the market.
Third, going all in.
If you are all in, you are destined to miss the chance to adjust your position or change coins,
even if you are correct about the trend, you can only watch others make money.
In the end, you are not losing in the market, but dying from your own habits.
I have summarized a set of "six-character mantra" for short-term trading:
Simple and crude, but really useful:
1. If the high-level consolidation is not over, the new high is still ahead; if the low-level consolidation is not at the bottom, it can easily continue to fall. Don't act until there’s a change.
2. If it's sideways, endure it, don't jump in. A fluctuating market is the most frustrating and the easiest to lose money.
3. Buy when the daily line closes negative, sell when it closes positive, going with the mood is much better than relying on your feelings.
4. Slow declines, weak rebounds; fast declines, easy explosions. Watch the rhythm, find the rhythm.
5. Build your position like a pyramid, enter in batches, keep some bullets, and don’t let the market dictate your rhythm.
6. After a big rise or fall, there must be a shakeout, and after the shakeout, there will definitely be a change. Don’t go all in at the peak, and don’t go all in in despair.
To put it bluntly, the dumbest way to trade cryptocurrencies is, in fact, the most effective.
But this path, 90% of people can't stick to it.
Because you have to endure, persevere, and control your hands,
you have to remain calm when others are crazy and act when others are desperate.
You think experts are lucky, but in fact, they have perfected the "dumb method."
The crypto world is not short of opportunities, but what it lacks is you, who can survive.