Last month, a newcomer was trading and was worried about a sideways cryptocurrency that had been trading for two weeks: "This coin has been fluctuating between 0.8 and 1.2 dollars for over ten days; should I go long or short?"

I pointed to the candlestick chart and marked the boundaries for him: "The lower boundary at 0.8 dollars is support; if it holds, go long; the upper boundary at 1.2 dollars is resistance; if it can’t break through, go short. There are just these two rules; the rest depends on execution."

On the first day, he did well, going long at 0.82 dollars, and closing at 1.18 dollars for nearly a 40% profit. But the next day, things went awry — the price surged to 1.22 dollars and then dropped back down. Even though it hadn’t stabilized above resistance, he thought, "This time it can break through," and stubbornly held onto his short position without selling. As a result, after three days of sideways movement, it suddenly broke through 0.8 dollars, and he not only lost his profits but also incurred a 20% loss.

During the review, he lamented: "I clearly saw that the resistance level wasn’t broken, but I got greedy and wanted to gamble a bit." I told him: In a sideways market, no matter how accurate the technical indicators are, it’s better to engrave the principle of "long if support holds, short if resistance holds" in your mind. Those who can make money in a sideways market are not necessarily the ones who predict accurately but those who act when the price reaches the level and take responsibility for their mistakes if they are wrong.

Recently, an old student was even more remarkable; he set up automatic trades for his account: buying automatically at 0.8 dollars and selling short automatically at 1.2 dollars, with stop losses set outside the support and resistance levels. After half a month of sideways trading without checking the market even once, he relied solely on machine discipline and made three times his investment.

In fact, what the cryptocurrency market lacks is not methods, but the determination to "act at the right time and cut losses when wrong." The range is like a cage; those who do not follow the rules will eventually be devoured by the market, while those who strictly adhere to discipline will always be able to extract profits from the fluctuations.

If you also often find yourself getting slapped in the face in a sideways market, why not start by executing these two rules: no hesitation on long positions if the support level holds; no greed on short positions if the resistance level holds. Remember, the money made in a sideways market is not trend money but discipline money.

The cryptocurrency market is not short of opportunities, but it lacks people with execution ability. Follow me at @加密大师兄888

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