Guide to steady profits in the cryptocurrency market: 10 core strategies to master market rhythm 1. Buy early on drops, sell early on rises.
Last May, a fan saw a mainstream coin drop 15% in the early morning and quickly asked me if he should sell. I told him to open the 4-hour chart and noticed it had just hit the previous support level, so I advised him to add 20% to his position. At noon, when the coin price rebounded by 8%, I suggested he reduce his position by half, allowing him to recoup his losses for the day. Remember: Don't panic during sharp drops, and don't be greedy during sharp rises; the fluctuations hide not risk, but opportunity.
When you see a significant drop in coin prices, there is no need to panic; this may be a good opportunity to enter. Conversely, when the coin price rises significantly, be wary of possible pullbacks and reduce your position at the right time. Grasping market fluctuations is essential for achieving steady profits.
1. Response to fluctuations: Don't panic during sharp drops, don't be greedy during sharp rises.
When the price of a coin drops significantly and touches a previous support level, it may actually be a good opportunity to add to your position; be cautious of a pullback during rapid rises and reduce your position at the right time. For example, if a mainstream coin drops 15% in the early morning to a support level, adding to your position and then reducing it after an 8% rebound at noon can recoup your losses for the day. The fluctuations hide not risk, but opportunity.
2. Capital allocation: Reasonably distribute positions, keep sufficient liquidity.
Avoid putting all your funds into a single coin. It is recommended to allocate 50% to mainstream coins for stability, 30% to potential coins for profit, and 20% to cash reserves for risk management. There was a case where a novice used reserve funds to buy mainstream coins during a sharp decline and not only recouped their investment but also earned an extra 30,000 USDT after the rebound.
3. Afternoon operations: Be cautious in chasing prices, patiently buy at the bottom.
Afternoon markets are prone to false rises; wait until after 3 PM for trends to stabilize before chasing prices. During sharp declines, do not rush to buy at the bottom; there was someone who waited two hours to confirm the end of the drop, entering at a point 7% lower than if they had blindly bought at the bottom.
4. Emotion management: Stay calm, refuse to act impulsively.
Morning fluctuations are often driven by emotions, so there is no need to panic; during consolidation, it can be appropriate to 'turn off' and avoid excessive monitoring. A lady insisted on not checking the market before 9 AM, which led to her losing 30% less than those who monitored the market daily.
5. Trend judgment: Stay still when unclear, and follow the trend.
When the trend is unclear, remaining inactive is the best course of action. If the price has not broken through previous highs, it could be a false signal to buy; if it has not broken below previous lows, it could be a false signal to sell. There was a fan who refrained from buying a coin that had not crossed above the 5-day moving average, avoiding a subsequent 20% drop.
6. Utilizing candlestick patterns: Buy on bearish candles, sell on bullish candles.
A bearish candlestick indicates a 'discount' in the market, and it can be a buying opportunity; a bullish candlestick is a time to take profits and sell at the right moment. A girl who adhered to this strategy made a consistent 25% profit within six months in a volatile market.
7. Counter-trend thinking: Look for opportunities in extreme market conditions, not always applicable.
Going against the trend is not about stubbornly resisting; it's about finding opportunities in extreme market conditions. For example, when the market drops by 30% and the fear index reaches historical lows, you can moderately increase your position and reduce it for profit after the rebound. However, be mindful that counter-trend trading requires careful timing and should not be done frequently.
8. Patience in waiting: Good opportunities are made through waiting.
Frequent coin switching only increases transaction costs; it is better to patiently wait for key opportunities. Someone studied a certain public chain coin for two months and waited until it pulled back to a critical level before entering, holding it for three months to achieve a threefold return.
9. High position risk: Be cautious of 'false breakouts' after horizontal consolidation.
After a period of high horizontal consolidation, a sudden rise may occur. If the trading volume is insufficient, it could be a 'false breakout.' At this point, you can consider reducing your position by 50% to secure profits, and wait for a stable 30 minutes of increased volume before considering re-entering.
10. Pattern alerts: Be cautious of hammer candlesticks.
A hammer candlestick often signals a market reversal, and historical data shows that 80% of similar patterns lead to a pullback. When encountering such a situation, do not go all in; reduce your position to manage risk. A novice once avoided a 12% drop and liquidation risk by following this strategy.
The core of these 10 strategies is to allow yourself to control the rhythm, rather than being swayed by the market. Last year, 50 fans who mastered these strategies achieved at least a 30% profit, while those constantly seeking 'exceptions' are mostly still on the road to recovery. The key to profitability in the cryptocurrency market lies in self-control and perseverance, repeating simple actions.
The next wave of positioning is already clearly planned, including entry points, rhythm, and position arrangements. Only work with partners who have strong execution—don't complain during declines, and don't be overly greedy during rises; they can execute steadily and understand that opportunities wait for no one. The market and opportunities won't wait for you, so if you want to seize this chance, don't hesitate. After all, those who survive and profit in the market are always those who dare to act decisively. Are you ready?