In the cryptocurrency world, the simplest methods are often the most effective.
But 90% of people never complete this journey.
To be honest, over the years, I've seen countless people leave the market with their positions wiped out and looking disgraced. It's not that they lack talent, but rather that they consistently make three fatal mistakes:
First, they become obsessed with chasing rising prices. As soon as the price of a cryptocurrency rises, they become envied, their minds racing, "This wave is going to soar!" They rush in and end up trapped. Then, when panic sets in, they hold onto their money but dare not touch it. Those who have ingrained the principle of "buy when it dips" are the ones who truly reap the benefits of the cycle.
Second, they place orders too aggressively. They always think, "If the direction is right, I can double my money!" But then, with a slight shake from the main force, the market is wiped out in a few seconds. Are there "guaranteed winning" orders in the market? Being too greedy can lead to a weaker position.
Third, they become overly complacent. They go all in when the emotion strikes. Even if they see the trend correctly, they don't have the energy to switch positions, and can only watch the opportunity slip away. Leaving some room for maneuver is the key to maneuvering in the market.
Ultimately, the cruelest thing about the cryptocurrency world is this: You don't lose to the market, but to your own habits.
I've summarized a set of "basic logic" for short-term trading. The simpler the principle, the more often it's overlooked:
1. If consolidation at a high level isn't complete, new highs are likely to follow; if sideways trading at a low level doesn't have a bottom, new lows are more likely to follow—don't be tempted to buy until a reversal signal appears.
2. Refrain from entering the market during sideways fluctuations. Too many people exhaust their patience and lose their capital in this constant oscillation.
3. Buy when the daily line closes in the red, and sell when it closes in the green. Following market sentiment is far more reliable than making random guesses.
4. A slow decline makes a rebound unlikely; a rapid decline, on the contrary, creates a faster rebound. Understanding the rhythm will help you avoid missing opportunities.
5. Build your position in a pyramid structure, entering the market in batches, and always keep 30% of your investment in reserve. The market is volatile; having food in hand keeps you from panicking.
6. After a sharp rise or fall, there will inevitably be consolidation, and after the consolidation, there will be a market reversal. Don't go all-in at highs, and don't go all-in at lows; wait for signals before making decisions.
The market is never short of opportunities; what's lacking are those who can remain steady, persevere, and survive to seize opportunities.
If you can do this, your path in cryptocurrency trading will become increasingly broad.
You often think that experts are lucky, but in reality, it's because they have thoroughly implemented these simple methods.