An old friend from the crypto world - a big shot with ten years of practical experience who has achieved financial freedom, summarizing some trading insights. He made several tens of millions relying on these principles! Today, everything shared is practical.
👇👇 Please read carefully, each point may help you avoid detours:
1️⃣ When the market crashes, if the coins you hold only experience a slight pullback, it indicates that there are major players supporting the market.
Such coins are often not 'small fry' following the trend, but strong coins controlled by major players with a logic of market control. In this situation, hold on with confidence; it's likely to have more potential later.
2️⃣ New traders can start with the 'moving average method', it's simple and easy to execute:
For short-term trading, look at the 5-day moving average: hold if the price is above the 5-day line, decisively take profit if it breaks below;
For medium-term trading, look at the 20-day moving average: similarly, as long as it doesn't break the line, you can hold it.
The key is to find a method that suits you and execute it strictly!
3️⃣ When a coin starts a major upward trend without significant volume, follow it decisively!
Volume increases in price = major players are pushing up, continue to hold;
Volume decreases in price but the trend remains intact, you can also continue to hold;
If there's a volume drop and it breaks the trend, don't hesitate; quickly reduce your position!
4️⃣ If there is no movement within three days of entering a short position, consider exiting.
Especially when the market is weak, stagnation is often the prelude to a decline.
Once a loss reaches 5%, regardless of the reason, decisively stop-loss - controlling risk is essential to talk about profit!
5️⃣ If a coin is halved from a high position and falls for 8 consecutive days, it likely entered the 'oversold rebound zone'.
In this case, pay attention to volume signals; if a rebound is expected, consider small positions for speculation.
6️⃣ When trading, prioritize focusing on 'leading coins'!
Leading coins rise the most and resist downward pressure the best; they are the combination of emotional value and fundamentals.
Don't be discouraged by 'it has risen too much', and don't pick up trash just because 'it has fallen too hard'. Buy in strength, sell in stronger strength; this is the mindset of the experts.
7️⃣ Trend is king; operating in accordance with the trend is the way to go!
Don't just pursue buying at a low price; consider whether the price is 'appropriate'.
In a downward trend, it's better to miss out than to casually try to catch the bottom. Timely replace weak coins and embrace strong trends!
8️⃣ Trading shouldn't only focus on short-term profits; long-term stability is more important.
After trading, learn to review - did you earn this time by luck or by a system?
Only by establishing a stable strategy system suitable for yourself can you achieve continuous profits.
9️⃣ Don't trade when you're not sure; staying in cash is also a form of position management!
The primary task of trading is not 'earning', but 'protecting'. Not acting blindly or greedily is the key to going far. Remember: it's not about the frequency of trading, but the success rate that matters!
