In the cryptocurrency world, remember these few phrases, and this year you can definitely drive a Maserati home!!
Last month, an old friend invited me for drinks, looking pale.
The reason is simple: averaging down, holding positions, and finally blowing up overnight, losing 50,000 principal, almost smashing his phone.
I patted him on the shoulder and said: "Brother, you didn't lose to the market, but to your own hands."
The cryptocurrency market isn't about who is smarter, but who can last longer. Today, I will share the iron rules of short-term trading + life-saving mantras that I've summarized from my years of struggles. Remember these few phrases, and driving a Maserati home this year is really not a dream!
1. Iron Rules of Short-Term Trading
1. Only focus on mainstream currencies, avoid small coins: Monitor the top ten mainstream coins every day, make comprehensive judgments based on hotspots, news, daily MACD golden cross, BOLL opening, etc., and choose volatile varieties to trade.
2. Position management is life: Divide 50,000 funds into five parts, only use 20% to build positions each time, and always leave a bottom position. Remember, full position = waiting to be liquidated.
3. Three-trade principle: Do not exceed three trades in a day, be steady with your hands, and if you feel itchy, cut your own fingers.
4. No averaging down rule: Entering and losing 30%? It means the entry point is wrong, withdraw immediately, don't fantasize about "waiting a bit longer."
5. Ironclad stop-loss: Must stop loss at 30% loss, do not hold positions, holding positions will lead to death.
6. Don't fall in love with candlesticks: Entry and exit must be quick; go find a partner if you want romance, don't look for candlesticks.
7. Follow the trend: The trend is your only friend. Operating against the trend, just wait for the market to educate you.
2. Cryptocurrency "Life-Saving Mantras"
Want to survive? Remember these street lingo: Don't panic and run during a big drop in the morning; there are often rebounds in the afternoon;
If there's a big rise in the afternoon, reduce your position; the probability of a retracement is high in the evening;
If the volume rises, it will continue to rise; if the volume drops, it will continue to drop;
Major good news must rise before it is announced, and it must drop after it is announced, this is an old trick; if domestic markets drop during the day, foreigners will pull the market up at 21:30 in the evening;
A spike = signal, the deeper the spike, the stronger the buy/sell signal;
Heavy positions must lead to liquidation because you are already on the exchange's priority harvesting list; if a short position just hit stop-loss, it will drop immediately, how can it kill you if it doesn't trick you into getting off?
When quickly getting out of a position, if the rebound suddenly stops, the dealer fears you will run away; after taking profit, if the market continues to pull you off, the market can only be light-footed;
