#以太坊十周年 #稳定币热潮 If you are questioning life due to losses in trading cryptocurrencies, spending 3 minutes reading this article may help you find a way out.
In the first three years, I faced liquidation to the point of questioning my life, accumulating debts of 8 million, and almost jumping off a building. Now? Haha, earning over a million a month feels like a game. Today, I’m going to share with you my trading principles that I've kept hidden.
Remember this twelve-character mantra: cut losses when wrong, hold when right, small losses, big gains. How to play specifically?
1. Look at the overall trend.
When the 5-day moving average is above, only go long; when it’s below, only go short. Don't go against the trend; it can end very badly.
2. Trial trades
Look for positions where the stop loss is only 1 yuan, but the potential profit can multiply by 10 times. Usually, this is at the bottom when the market just starts. If wrong, you only lose the cost of a meal.
3. Cutting losses should be quick
If the key level breaks, cut losses immediately; don't get emotionally attached to your positions. If the market comes back after you cut losses, then re-enter, it's better than facing liquidation.
4. Increasing positions is the way to go.
After making the first wave of profits, wait for the pullback to the support level before adding to your position. Remember: adding to your position should be as cautious as opening a new trade for the first time.
Move the stop loss.
Every time you add to your position, raise the stop loss, so in the end, you only have profits running, allowing you to sleep well.
6. Let the profits fly
Don't run away after making a 10% profit as if you've never seen money before. The real meat is yet to come; wait for clear signs of a peak before dumping your holdings all at once.
These 6 points seem simple, but 90% of people fail in execution. If you can control your hands, making money is just a matter of time. When I realized this, my account balance started to rocket. Now it's your turn; after 10 years of trading cryptocurrencies, from major losses to big gains, I’ve summarized 10 iron rules to give all retail investors some advice! If you want to play long-term in the crypto market, please read this heartfelt article carefully! Newcomers must keep these in mind to navigate the market smoothly.
The cryptocurrency world is full of opportunities and risks, especially for newcomers. Learning how to survive and profit in such a volatile market is a subject that requires continuous learning and practice.
1. Popular coins in a bull market drop the fastest.
Those cryptocurrencies that are being hyped up, especially those with significant control, often burst their bubbles quickly. The more a coin attracts a large number of retail investors to chase, the greater the risk. It's like inflating a balloon; the bigger it gets, the faster it bursts. In a bull market, popular coins are often favored by short-term speculators, but they are also the traps that can lead to total loss.
Suggestion: Don't blindly chase after price increases, especially those that have surged dramatically in a short time. Stay calm to avoid becoming a 'bag holder.'
2. Altcoin tactics are quite similar. The typical play for altcoins is to first crash the price to create panic, then slowly raise it to attract retail investors, eventually changing tactics to continue harvesting. This kind of routine is tried and true, and newcomers can easily get burned. Suggestion: For altcoins, be mentally prepared, don't be deceived by short-term gains, and don't easily go all in.
3. The long-term trend of the market is upward. Although the cryptocurrency market has severe short-term fluctuations, if you look at a longer time frame, the overall trend is upward. The historical trends of mainstream coins like Bitcoin and Ethereum have proven this. Suggestion: If you are a long-term investor, don't be scared by short-term fluctuations; patiently hold onto quality assets, and time will reward you.
4. Potential coins that aren't being hyped. Truly promising cryptocurrencies often remain quiet at the bottom, with few people mentioning them. Those that are frantically speculated upon are often tools for market makers to harvest profits. Low-profile coins may quietly explode at some point. Suggestion: Pay more attention to projects with solid technology and reliable teams that have not yet been heavily speculated upon; they could be the future's dark horses.
5. Be cautious with newly listed coins. Coins that are newly listed on exchanges, especially those that experience wild price swings, are often traps set by market makers. Such coins usually lack real value support and are purely designed to harvest profits. Suggestion: For new coins, especially those with significant volatility shortly after listing, stay vigilant and don't easily enter the market.
6. Price fluctuations are common. When you buy, it drops; when you sell, it rises. This is a normal occurrence in the cryptocurrency market. The market is highly volatile, and short-term price changes do not fully reflect a project's value. Suggestion: Maintain a good mindset and don't panic because of short-term fluctuations. Develop your investment strategy and stick to it strictly.
7. The strongest rebounds do not indicate potential. The cryptocurrencies that rebound the most aggressively are often not truly promising but are speculative plays that are being hyped up. The price increase of such cryptocurrencies usually lacks fundamental support; they rise quickly and fall just as fast. Suggestion: Don't be deceived by short-term surges; truly promising cryptocurrencies usually have more stable fluctuations and an upward long-term trend.
8. Be careful of sudden pullbacks. If the cryptocurrency you bought rises sharply and then suddenly pulls back, this could be a signal that the market maker is starting to sell off. Market makers usually attract retail investors by pushing the price up and then sell at high levels. Suggestion: When encountering sudden pullbacks, take profits or cut losses in time to avoid becoming the market maker's 'bag holder.'
9. Cryptocurrencies that explode in the second half. In a bull market, cryptocurrencies that perform poorly in the early stages may explode several times or even more in the second half. These coins are like marathon runners, building strength in the early stages and exerting force later. Suggestion: Don't overlook those that perform mediocrely at first but have solid fundamentals; they may be dark horses in the later stages of a bull market.
10. Coins that have been flat for months may explode. In a bull market, some cryptocurrencies may experience several times the increase before going flat for months. This flat period is usually where the market maker is building strength, waiting for the next explosion opportunity. Suggestion: For coins that have been flat for a long time, keep an eye on them; they may be the stars of the next market cycle.
Finally, to summarize: the two key points for surviving in the cryptocurrency market.
If you feel confused or unsure during your operations, remember these two points:
1. Be decisive: Opportunities are fleeting, and you must act decisively to seize them.
2. Stay online: Information in the cryptocurrency world changes rapidly; it’s crucial to get the latest news and react timely. The crypto market is full of challenges, but as long as you master these iron rules and stay calm and rational, you can find your opportunities in this market. Remember, investing is a marathon, not a sprint; patience and strategy are key to success!
