The dumbest way to trade cryptocurrencies is often the most effective.
But on this road, 90% of people can't persist.
To be honest, over the years I've seen too many people get liquidated, exit, and leave in disgrace,
It's not that they lack talent, but they keep making three fatal mistakes:
First, buying on the rise.
When the price goes up, they become greedy, thinking "this wave can soar," but as soon as they buy, it crashes,
And when there's real panic selling, no one dares to buy.
Only those who can make "buying on the dip" a habit are truly reaping the benefits of the cycle.
Second, betting too much.
Thinking that being right about the direction means they can make a fortune, only to be shaken by the main players, getting wiped out in an instant.
Third, going all in.
When emotions rise, they go All in, even if they guessed the trend correctly,
They can't flexibly change positions or adjust their holdings, missing out on real opportunities and just watching helplessly.
Ultimately, the most brutal thing about the crypto world is:
You didn't lose because of the market, but because you lost to your own habits.
I have summarized a set of six principles for short-term trading; the simpler the principle, the more it is overlooked:
1. High position consolidation is not over; new highs are often still ahead; low position consolidation has no bottom, easily hitting new lows. Don’t act before a change in trend.
2. Stay still during consolidation, never enter the market. Most people lose their patience during fluctuations.
3. Buy on a bearish daily close, sell on a bullish daily close. Following the market sentiment is much better than guessing.
4. Slow declines won’t lead to high rebounds; fast declines will prompt a quick rebound. If you can see the market rhythm clearly, you can spot opportunities.
5. Use a pyramid-style position building, entering in batches, always leaving some bullets.
6. After a big rise or fall, there must be consolidation; after consolidation, there will definitely be a change in trend. Don’t go all in at highs, and don't go all in at lows; wait for signals before deciding your fate.
The market is never short of opportunities; what it lacks are those who can stay steady, endure, and survive.
If you can achieve these, the path of trading cryptocurrencies will become broader.
You always think experts have good luck, but in fact, it's because they use their dumb methods with enough intensity.