In the cryptocurrency world, fluctuations are the norm, emotions are traps, and discipline is the key. Below are the eight core strategies I have summarized from years of practical experience. Mastering them will not only help you avoid risks but also allow you to seize opportunities at critical moments, achieving wealth leaps.
One, there are mysteries in the morning market: The early bird catches the worm, but it can also fall into a pit.
Core idea: Market sentiment is most primitive in the early morning; fluctuations are often the most genuine, but it is also the best time for the main forces to wash out positions.
- If the price of the coin drops sharply in the morning, don’t panic; this is likely the main forces 'washing out' positions, providing an opportunity to add positions at lower levels.
- If the price of the coin rises sharply in the morning, don’t rush to chase the high; it may just be a 'false signal' from short-term capital. It’s better to sell early to lock in profits.
📌Operation Suggestions:
- During a plunge, observe the volume and news; if there is no significant bad news, consider buying in batches at lower prices.
- Be wary of 'highs and subsequent drops' during rises; reduce your position at highs to avoid a rollercoaster ride.
Two, don't act blindly during afternoon fluctuations: remain calm in both rises and falls.
Core idea: The afternoon market is prone to 'false breakouts' or 'false declines', which can easily mislead retail investors about the trend.
- If there is a sudden surge in the afternoon, do not blindly chase the rise; it may just be a short-term capital pump, and it can easily fall back afterward.
- If there is a sudden drop in the afternoon, don’t panic and cut losses; it may be a washout or emotional release. It is safer to observe and then choose the right moment to enter.
📌Operation Suggestions:
- If the price increase is too large, observe whether the trading volume continues to expand; if it rises on decreasing volume, beware of a pullback.
- When the support level is broken, first observe whether it is a 'fake breakdown'; it is safer to add positions at the next day's low.
Three, maintain your mindset in the face of a major drop: Don't become a slave to your emotions.
Core idea: The cryptocurrency market fears 'emotional trading' the most, especially during significant price declines.
- If you wake up in the morning to find the price of the coin has dropped significantly, don’t panic and cut losses; the market changes rapidly, and the main forces often create panic in the early session.
- If the market has no fluctuations and no direction for a long time, do not be anxious; maintain patience and wait for a clear trend before acting.
📌Operation Suggestions:
- During major declines, analyze the fundamentals and news to confirm whether it is a systemic risk.
- During the quiet period, perform technical analysis and wait for breakout signals.
Four, maintain firm trading discipline: Do not let greed and hesitation ruin you.
Core idea: The success or failure of trading relies 70% on discipline and 30% on technique.
- If the price hasn’t reached your predetermined take-profit point, don’t sell easily, or it will be 'small profits and large losses'.
- If the price hasn’t reached your predetermined entry point, don’t blindly try to bottom out, or you may find yourself 'buying halfway up the mountain'.
📌Operation Suggestions:
- Set stop-loss and take-profit points in advance and strictly execute them.
- Avoid frequent trading during the consolidation phase to prevent 'blindly making mistakes'.
Five, the bullish and bearish candle strategy: A simple yet classic technical trading method.
Core idea: Buy on bearish candles and sell on bullish candles; this is a very practical contrarian trading strategy.
- When a bearish candle appears, it indicates a price pullback, presenting a good opportunity to buy at a lower price.
- When a bullish candle appears, it indicates a short-term rise; consider appropriately reducing your position to secure profits.
📌Operation Suggestions:
- Observe whether there is an increase in volume after a bearish candle. If there is an increase in volume during a pullback, it may indicate a washout, allowing for a light position to be established.
- After a bullish candle, observe whether there is a decrease in volume during the rise; if there is a decrease, it may indicate insufficient upward momentum, so reduce your position in a timely manner.
Six, contrarian thinking is key: When others are fearful, be greedy; when others are crazy, be calm.
Core idea: The cryptocurrency market is an emotional battleground; the true winners often 'swim upstream'.
- When the market is frantically chasing rises, remain rational and beware of bubble bursts.
- When the market collectively panics, boldly position yourself to pick up cheap chips.
📌Operation Suggestions:
- During market frenzy, pay attention to 'bubble signals', such as FOMO emotions and a large influx of new retail investors.
- During market panic, look for 'undervalued assets', such as those with good fundamentals but short-term declines.
Seven, consolidation phases test patience the most: Endure, and you will win.
Core idea: Consolidation is the prelude to a trend; those who can endure loneliness can enjoy prosperity.
- When the price of the coin fluctuates for a long time at high or low levels, it is most likely to cause anxiety.
- At this time, avoid frequent trading; patiently wait for the trend to clarify before decisively taking action.
📌Operation Suggestions:
- You can use 'support and resistance levels' to judge the consolidation range and wait for breakout signals.
- During consolidation, pay more attention to industry trends and preemptively set up for potential explosive hot spots.
Eight, grasp the tail end of the surge: Don’t miss the last revelry.
Core idea: A sudden surge after a long period of sideways movement often signals 'the last wave of the market'.
- When the price of a coin suddenly spikes after a long period of sideways movement, it is likely a 'pump and dump' before the main forces sell off.
- At this time, you should take profits and exit promptly to avoid getting stuck if the market reverses.
📌Operation Suggestions:
- Observe whether the trading volume is increasing; if there is a massive volume surge, beware of 'false signals'.
- If you have made significant profits, decisively sell in batches when the price rises, securing profits.
Summary: The survival strategy in the cryptocurrency world is not about speed, but about stability.
In the cryptocurrency world, emotions are the enemy, discipline is a friend, and strategy is a weapon. The eight secrets above may seem simple, but they contain profound trading philosophy.
🔹Beginner tips: Start with strategies on bullish and bearish candles, contrarian thinking, and how to deal with consolidation phases to gradually build your trading system. 🔹Expert reminder: Don’t overlook basic strategies; the more experienced you are, the easier it is to make 'emotional trading' mistakes.
Remember one thing: 'In the cryptocurrency world, it’s not about who earns the most, but about who lasts the longest.'