Over the years in the cryptocurrency world, I've learned some valuable lessons from the pitfalls I've encountered, and I'd like to share them with my new friends.
Don't get carried away with hot coins or altcoins. Once you've achieved your expected profit, switch to a more stable option. Don't expect to profit from the entire process. Altcoins rise sharply, but they fall even more sharply. Once you've speculated, you need to switch, otherwise, your efforts will be in vain. There are countless examples of people who harbored illusions about FIL and LUNA, only to lose everything.
On the market, if a price moves sideways at a high level before rising, you should hold on to your holdings and prepare to sell. This is likely a trap set by major investors. If a price moves sideways at a low level, then hits a new low before quickly pulling back, this is often a final market shakeout. If you hold on, you might be able to profit.
You need to understand the market environment. When the market is bad, a coin's price will likely rise against the trend, and a small rise against the trend may lead to a large rise. When the market is good, be wary of small dips against the trend, as small drops against the trend may lead to a large drop. Don't rush into the trap.
Position management needs to change the old mindset: only increase your position when you make money, and don't cover your position when you lose money. Many people buy more as prices fall, only to find themselves further trapped. Wait until the price breaks through previous highs before adding to your position and let the profits flow; if prices fall, stop losses to prevent small losses from becoming large ones.
Identify coins at the bottom; rising prices often follow a "two steps forward, one step back" pattern. Don't panic, don't doubt, and hold on patiently; there may be surprises ahead. Especially for coins with an upward trend, don't get shaken out during periods of volatility, or you'll be in big trouble.
Choosing coins is tricky: first-rate investors look at sectors, second-rate investors look at individual coins, third-rate investors look at indicators, and worst-case scenario investors look at blind gamblers. First, look at hot sectors with popular investors and a high win rate; then, choose specific coins. Looking solely at indicators is a novice, and buying based on intuition is a gambler, who will inevitably fall.
Indicators follow volume and price; volume and price are fundamental. Ignoring volume and price and focusing solely on indicators, you'll be in trouble. Price increases require capital to drive them, and the coordination of volume and price makes any indicator more reliable.
Finally, a tip: Look for support when prices are rising, and resistance when prices are falling. During an uptrend, rely on the support line, and buy low when it retraces to support. During a downtrend, monitor the resistance line. When it hits, either go short or exit immediately. Don't hesitate.
The cryptocurrency market is full of temptations and pitfalls. Think carefully and summarize, don't be greedy or panic, and you'll eventually find your rhythm.
If you're new to the market and are stuck, or feeling lost, follow Brother Yu for more!