Entry Chapter: When you first step in, don't dive in blindly; first, test the water temperature. Invest little by little; never rush to put all your money in.
Sideways Movement Chapter: If the market is consolidating at a low level but making new lows, having the courage to buy heavily is real skill; if it suddenly spikes at a high level, don’t hesitate to sell quickly; greed can easily lead to being trapped at the peak.
Volatility Chapter: Watch the line shoot up and sell; you can buy in when there's a sharp drop. It's best not to act during sideways movement; fewer trades mean fewer mistakes. Sideways movement often indicates accumulation; if you hold tight to your chips, the next moment could see a surge. However, if there's a sudden sharp rise, stay alert and be ready to secure profits at any time. When prices are slowly declining, there's no need to panic; averaging down in batches is just right.
Trading Timing Chapter: If it hasn't surged, hold on; don’t buy randomly during a drop; treat sideways movement as watching a play. Buy on bearish candles and sell on bullish ones; reversing your actions can help you avoid retail traps. Don’t rush to cut losses during a morning drop; it may actually be a buying opportunity. Don’t be greedy during a morning rise; sell part first before considering more. If there’s a sudden surge in the afternoon, chasing highs can lead to being trapped; if there's a significant drop in the afternoon, it’s better to wait until the next day to assess. If you're stuck, averaging down should only aim for breakeven; don’t expect to double your investment in one go; greed is the biggest pitfall.
Risk Awareness Chapter: The seemingly calm market can suddenly spike, often leading to significant fluctuations; a sharp rise is usually followed by a pullback, so be vigilant when you see K-lines forming triangles for several days. Watch support levels during rises and resistance levels during declines. Trading with a full position is suicidal, and stubbornly holding onto a losing position is a major taboo. The market is unpredictable; you must know when to pull back, and every entry and exit must be timed.
Ultimately, trading cryptocurrencies is about mindset. The two devils of greed and fear can ruin even the best strategies. Chasing gains and selling on dips is a common pitfall for retail investors. Those who can remain calm are the ones who can make money in a chaotic environment.
In addition to these rules, I’ll share a few trading methods that have been validated in practice, which can be used by both new and experienced players.
Oscillation Trading Method: Most of the time, the market oscillates within a range; at this time, high sell and low buy is the most stable. Open the BOLL indicator and combine it with box theory to find support and resistance levels. Enter and exit positions quickly when the opportunity arises, and never think about capturing the last point.
Breakout Trading Method: After a long period of consolidation, the market will eventually choose a direction; keeping up with the rhythm at this time allows for quick profits. But be sure to determine if the breakout is genuine or false; beginners should wait for confirmation signals before acting, so as not to be misled by false breakouts.
One-sided Trend Trading Method: Once the market breaks through consolidation to form a one-sided trend, trading in the direction of the trend is definitely right. Entering during pullbacks or bounces is the most cost-effective; pay more attention to K-lines, moving averages, and Bollinger Bands, as familiarity with indicators allows for flexibility.
Resistance and Support Trading Method: When the market hits key positions, it will always pause; this is a golden opportunity. Draw trend lines, observe moving averages, and adjust Bollinger Bands; using these tools effectively will help you find precise buy and sell points.
Pullback Bounce Trading Method: After significant rises and falls, there will always be a breather; this brief pullback or bounce is an opportunity to make money. Focus mainly on K-line patterns; those with good market sense can hit the points accurately, while beginners can practice and develop their feel through review.
Time Period Trading Method: Morning and afternoon sessions have small fluctuations, suitable for cautious players; while profits may be slow, the market is easier to grasp. In the evening and early morning, fluctuations are large, suitable for those who dare to take risks, but technical skills and judgment must be solid, or else it’s easy to stumble.
In fact, there are no surefire rules in the cryptocurrency market; the key is to find a rhythm that suits you. Rather than blindly following others, it’s better to calm down and refine your strategy. By trading alongside experienced teams now, you can avoid many pitfalls and seize opportunities in fluctuations. Ultimately, calmness and rationality are essential for survival in the cryptocurrency space; when emotions stabilize, money will naturally flow in.
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