Eight years of cryptocurrency trading, let me share some heartfelt words. In the first three years, I lost 70%, it was truly a bloody price.
Later, I slowly figured out some survival rules. I can't say it's a sure win, but at least I can avoid five years of detours.
The most typical flaw of retail investors is doing the opposite: holding on to losses and running away with profits.
In fact, you should do the opposite. You need to dare to take the profits you earn, and be brave enough to cut losses when the price drops to a certain level.
Don't underestimate this point. Just the discipline of 'lock in profits at 10% and stop losses at 5%' can save you countless times.
Speaking of volume, the trading volume in the market represents power.
If the volume shrinks while making new highs, there's a good chance there's still potential; if the volume shrinks after breaking the 20-day moving average, that's almost a point where money is being given away.
Focus on the mainstream; don't fly around everywhere. Don't fill your account with seven or eight different coins; at most two or three. If you can't control yourself, you will die quickly.
There are also rules intraday. Don't panic during sharp declines; rebounds often follow. Be cautious during explosive moves at the end of the day; there's a high probability of a drop the next day.
Remember a few phrases: Shrinking volume still rises, expanding volume stagnates at the top, and huge volume spikes will definitely pull back.
The market rhythm is always more logical than you think.
Trends are king. Don’t predict; just follow.
For short-term trading, focus on the 5-day line; for longer views, look at the 20-day line. If it breaks, just exit; don’t hold on.
A strong coin may drop a bit but it’s not necessarily over. As long as the popularity is still there and the turnover is aggressive, it often can reverse.
If you really want to play, play these high-odds ones.
The most important point is that after a big profit, you must go empty for a rest.
The market is best at harvesting those who are overly excited.
I’ve suffered too many losses like this, clearly making huge profits and then handing it back.
When you’re losing, don’t rush to operate desperately. Calm down and wait for the profit effect to come back before jumping back in.
Ultimately, trading cryptocurrencies has never been about a moment of pleasure, but about endurance.
Enduring mindset, enduring understanding, enduring execution.
Opportunities are abundant; there are bull markets and bear markets. What’s always lacking is whether you can truly follow the rules.
It took me eight years to understand that trading cryptocurrencies is not difficult; the difficult part is controlling oneself.
Remember, the market will not disappoint those who are patient.
If you are not very familiar with certain coins or need help in other areas, feel free to reach out to me. I will help you solve problems and provide you with the most detailed analysis!