Many people think trading cryptocurrencies must involve technical analysis, studying candlesticks, using leverage, and chasing hot topics. I used to think this way too, but later realized that the more you fuss, the faster you lose. Until I switched to the simplest method, I ended up making 8 times.
Why do smart people lose money instead?
I've seen too many people researching various news every day, frequently switching coins, chasing any that are rising, and ending up losing money back and forth. A friend of mine switched over 40 coins in three months and ended up losing 70% of his principal.
As for me? I just do three things:
Only buy coins that have just started trending.
Don't catch the bottom, don't wait for a crash, just wait for the coin price to stabilize at key positions, such as breaking previous highs or when moving averages start to rise. At this point, I first use 3% of my funds to buy a little, not being greedy.
Only increase your position after confirming the trend.
If the coin price continues to rise and the trading volume increases, it indicates the trend is real, and I will add 20%-50% more funds. Many people like to catch the bottom, but the bottom is usually caught by the main players, and retail investors catching the bottom are likely to be trapped.
Sell when you reach your target, don't be greedy or cling to battles.
Set profit-taking and loss-cutting points in advance, for example, sell at a 20% profit or cut losses at 10%. Many people always want to wait for a higher point, resulting in profit being given back, or even turning into a loss.
Why can a simple method make money?
Because most people in the market are emotional; they crazily chase after rises and panic sell on drops. I only trade after confirming trends, don’t guess tops or bottoms, don’t touch garbage coins, and don’t operate frequently.
A fan of mine previously lost 400,000, but later using this method, not only did he recover his losses in three months, but he also earned enough for a Tesla.
Summary: Less fussing, more earning.
Trading cryptocurrencies is not about who is smarter, but who is steadier. Most people lose money not because they don't understand the technology, but because they can't control their hands. If you always chase the highs and sell the lows, you might as well try this simple method - patiently wait for opportunities, only act when the trend appears, and leave once you've reached your target.
If you also want to change your loss situation, you can follow me, and I will share more practical experiences. The market always rewards those who are patient, not the smartest.