Many people have been in the cryptocurrency market for a few years, yet they quietly leave in the end, not because they missed the bull market, but because they succumbed to the most basic mistakes.

I always feel that the most foolish way to trade cryptocurrency is often the most effective.

However, this road is too slow and dull, and the vast majority of people cannot persist. Because they always fall victim to these three major 'common ailments':

⚠️ First, chasing and cutting losses. Rushing in when a cryptocurrency rises, fantasizing it can still soar, only to buy at a high point and panic when it falls, missing the rebound. Only those who can buy during declines and sell at peaks truly reap the cyclical dividends.

⚠️ Second, over-leveraging on directional bets. The direction may be right, but getting washed out by the main force after a few rounds is not a misjudgment; rather, it is a failure to endure.

⚠️ Third, emotional over-leverage. Getting excited and going all in results in a loss of flexibility in adjusting positions. Even if the prediction is correct, you are unable to move funds, and when opportunities arise, you can only feel anxious.

Ultimately, in the cryptocurrency market, it is not the market that loses but the habits.

I have summarized a set of 'six-character mantra' for short-term trading. The reasoning is simple, yet it is easily overlooked:

1⃣️ High-level consolidation is not over; new highs are often still to come; low-level fluctuations are hard to stop, making it easy to test new lows. Don’t act until the trend changes.

2⃣️ Do not act during sideways movement. Most people fail in consolidation.

3⃣️ Buy on bearish daily closes and sell on bullish closes. Going with market sentiment is better than subjective judgment.

4⃣️ Slow declines are hard to bounce back from, while rapid declines are easy to reverse. Understanding the rhythm is key to seizing opportunities.

5⃣️ Pyramid building, entering in batches, always keeping some bullets.

6⃣️ After large fluctuations, there will definitely be consolidation, and after consolidation, there will be a change in the trend. Don't place bets at extreme positions; wait for signals to act.

The market is not short of opportunities; what is lacking are those who can endure, wait, and survive. You may think that experts rely on luck, but in fact, they apply 'stupid methods' to the extreme.

In the cryptocurrency market, through candlestick charts

Using technical analysis is an important means to determine entry timing. Here are some methods based on candlestick charts to judge entry timing:

1. Identify trends

• Uptrend: If multiple bullish candles (green) appear consecutively, and each bullish candle's closing price is higher than the previous one, it indicates that the market is in an uptrend.

• Downtrend: If multiple bearish candles (red) appear consecutively, and each bearish candle's closing price is lower than the previous one, it indicates that the market is in a downtrend.

• Trend Reversal Signals

: Certain specific candlestick patterns such as hammer, inverted hammer, morning star, engulfing pattern, etc., usually appear during trend reversals and can serve as signals to enter positions.

2. Pay attention to support and resistance levels

• Support Level

: When the price drops to a certain range and repeatedly stops falling, that range is the support level. If the price approaches the support level and shows a bullish candlestick pattern (like a hammer), consider entering long positions.

• Resistance Level: When the price rises to a certain range and repeatedly stops rising, that range is the resistance level. If the price approaches the resistance level and shows a bearish candlestick pattern (like a hanging man), consider entering short positions.

3. Volume-price coordination

• Volume-price coordination in an uptrend: If volume increases while prices are rising, it indicates strong buying pressure in the market; consider entering long positions at this time.

• Volume-price coordination in a downtrend: If volume increases while prices are falling, it indicates strong selling pressure in the market; consider entering short positions at this time.

4. Special candlestick patterns

• Hammer: Appears at the bottom of a downtrend, with a long lower shadow at least twice the body, indicating that the market may reverse upwards, serving as a signal to enter long positions.

• Inverted Hammer: This pattern is similar to a hammer but has an upper shadow, indicating that the market may reverse upwards, suitable for entering long positions.

• Three White Soldiers: Composed of three consecutive bullish candles, each closing higher than the previous candle's high, indicating a strong market uptrend and suitable for entering long positions.

• Bullish Engulfing Pattern: A long bearish candle followed by a shorter bullish candle, with the bullish candle completely within the body of the bearish candle, indicating that the downtrend may be ending, suitable for entering long positions.

5. Combine with technical indicators

• Moving Average Crossovers

: When a short-term moving average (like the 5-day moving average) crosses above a long-term moving average (like the 10-day moving average), it forms a golden cross, indicating that the market may enter an uptrend and serves as a signal to enter long positions.

• MACD Indicator

: When the MACD's short-term moving average crosses above the long-term moving average, forming a golden cross, it indicates that the bullish trend is strengthening, suitable for entering long positions.

6. Risk management

• Setting Stop Loss: When entering a position, it is recommended to set stop loss points to control risk. Stop loss points can be set outside of key support or resistance levels.

The cryptocurrency market has allowed me to accumulate about a million in profits over the years, with a principal of 80,000, and I have been trading full-time for 8 years. During this time, I have experienced many ups and downs, but I really made big money thanks to two bull market opportunities. Here are some of my experiences and lessons:

1. Keep the risk of each trade within 10% of the principal; new traders should not take risks; it's best to keep the risk at 2%-5%.

2. Once in the market, do not close positions due to short-term fluctuations or impatience; the market needs time to prove itself, and patience is a must.

3. Execute according to the plan during trading to avoid overtrading, as it can easily lead to mistakes.

4. After making a profit, gradually adjust your take profit and stop loss, and boldly follow the market trend to maximize your profits.

5. Never cancel your stop loss points; this effectively controls risk.

6. It is not recommended to add to your position when the market is going smoothly; greed often leads to significant risks.

7. Switching from long to short positions requires a high level of technical skill; not everyone is suited to switch positions at will.

8. Even when trading becomes effortless, do not easily increase your position, as overconfidence can lead to major mistakes. The above insights are experiences I have summarized from years of struggle in the cryptocurrency market, and I hope they help you.

Many people compare cryptocurrency trading to gambling, thinking that once involved, it is hard to quit. What they don't realize is that these individuals have had a deep-rooted gambler's mentality from the start. Cryptocurrency investment is not gambling; it is not synonymous with adventure.

It is precisely because of this high risk that you cannot only think about getting rich overnight; such low-probability events will only disrupt your mentality. Strictness, caution, and discipline are the qualities you need to possess.

Treat cryptocurrency investment like a job, using the discipline of going to work every day to regulate your trading, discard the gambler's greed, and adopt the devotion of a pilgrim. Only then can you walk the long and far road of cryptocurrency investment.

Welcome to follow Huihui, where you can learn and exchange in real trading, and have a clear understanding of market direction and strategy. No matter the market style, knowing in advance gives you time to master it better!!!

Huihui only does real trading; the team still has positions available, so come and join quickly.

$BTC $ETH