Six Survival Rules for Short-term Cryptocurrency Trading:
1. Confirm the Trend Before Acting
High-level consolidation often leads to new highs, while low-level consolidation is likely to lead to new lows. Don’t rush during the consolidation phase; wait for the price to break through key levels before taking action.
2. Don’t Be Impulsive in a Volatile Market
Most people lose money by seeking opportunities during sideways movement. Sideways movement is the market’s "power accumulation"; wait for the trend to clarify before entering the market.
3. Analyze Candlestick Patterns Contrarily
A large bearish candle closing (bear market candlestick) may signal a buying opportunity; a large bullish candle closing (bull market candlestick) could suggest taking profits. Don’t panic with a bearish candle close, and don’t be greedy with a bullish candle close.
4. Avoid Bouncing Back in a Downtrend
In a downtrend, bounces are often just "flashbacks" and can accelerate the decline. Don’t rush to buy at high levels; wait until the trend is clearly deteriorating.
5. Build Positions Gradually Using a Pyramid Strategy
Don’t invest your entire capital at once; buy more as the price decreases, and buy less as it increases. For example, buy 10% initially, buy 20% if it drops 5%, and continue buying to lower your cost and avoid wrong bets.
6. Liquidate Positions in a Timely Manner at Trend Peaks
Prices will oscillate when they reach extreme highs or lows. Don’t cling to high positions; sell when the price has risen significantly; don’t rush at low positions; confirm a reversal before buying. If the price starts to decline from a high point, liquidate your positions promptly, as the trend may change.
Remember, trading is not gambling; it is a game of probabilities. First avoid "pits" to preserve your capital, strictly adhere to trading discipline, don’t be swayed by emotions, and don’t aim to "make all the money"; just seize a few certain opportunities. There are many market opportunities, but what is lacking are calm individuals who can seize those opportunities.$BTC $ETH