In the early years of trading cryptocurrencies, I was like many others, staying up late to monitor the market, chasing rises and falls, and losing sleep over it. Eventually, I stuck to a simple method and not only survived but began to stabilize my profits.
Looking back now, while this method seems simple, it works: 'If I don't see familiar signals, I absolutely won't act!'
Better to miss out on opportunities than to make random trades.
Thanks to this ironclad rule, I can now maintain an annual return rate of over 50% without relying on luck.
Here are some safety tips for beginners, based on my hard-earned experience from trading:
1. Only place trades after 9 PM.
During the day, news can be chaotic with all sorts of false positives and negatives flying around, causing the market to jump erratically, making it easy to get misled.
I usually wait until after 9 PM to make trades; by then, the news is mostly stable, the candlestick chart is cleaner, and the direction is clearer.
2. Secure profits immediately when you see gains.
Stop always thinking about doubling your money! For example, if you gain 1000 U today, I suggest you withdraw 300 U to your bank card right away and continue trading with the rest.
I've seen too many people who want to triple their investment and expect five times the return, only to lose everything on one callback.
3. Look at indicators, not feelings.
Don't trade based on feelings; that's just blind guessing.
Install TradingView on your phone and check these indicators before trading:
• MACD: Are there any golden or death crosses?
• RSI: Is there overbought or oversold territory?
• Bollinger Bands: Is there a squeeze or breakout?
Only consider entering the market when at least two out of three indicators give consistent signals.
4. Be flexible with stop-loss settings.
When you have time to monitor the market, manually adjust your stop-loss price upwards when your investment rises. For example, if you buy at 1000 and it rises to 1100, move your stop-loss to 1050 to secure profit.
If you need to step out and can't monitor the market, make sure to set a hard stop-loss at 3% to prevent sudden crashes from wiping you out.
5. You must withdraw profits weekly.
Non-withdrawn funds are just a numbers game!
Every Friday without fail, I transfer 30% of my profits to my bank card, and continue rolling over the rest. Over time, this will build up your account balance.
6. There are tricks to reading candlestick charts.
• For short-term trading, look at the 1-hour chart: consider going long if there are two consecutive bullish candles.
• If the market is stagnant, switch to the 4-hour chart to find support lines; consider entering when it approaches support levels.
7. Don't fall into these traps!
• Don't leverage more than 10 times, beginners should ideally keep it within 5 times.
• Avoid coins like Dogecoin or Shitcoins; they are easy to get scammed with.
• Limit yourself to a maximum of 3 trades per day; too many can lead to losing control.
• Never borrow to trade cryptocurrencies!
Here's a final piece of advice for you:
Trading cryptocurrencies is not gambling; treat it like a job. Clock in and out at regular hours, shut down your computer when it's time, eat and sleep as needed, and you'll find that your investments become more stable.
I am Xiao O, a professional analyst and educator, your mentor and friend on your investment journey! As an analyst, my fundamental role is to help everyone make money. I will help you overcome confusion and losses, speaking with results. When you feel lost and don't know what to do, follow Xiao O, and I'll point you in the right direction.