Principles for determining the timing of cryptocurrency trading:
Buying timing:
1. Price drop bottoms;
2. Technical indicators are oversold;
3. Market sentiment improves;
4. Buy on dips;
5. Low-cost dollar averaging.
Selling timing:
1. Price increase peaks;
2. Technical indicators are overbought;
3. Market sentiment deteriorates;
4. Profit target;
5. Stop-loss strategy.
Timing for buying and selling cryptocurrency:
In the cryptocurrency market, grasping the timing of buying and selling is crucial. Here are some guidelines to help you determine the ideal trading times:
Buying timing:
Price drop bottoms: After a significant drop in coin price, when it reaches support levels or forms double bottoms and other reversal patterns, it is usually a buying opportunity.
Technical indicators oversold: When indicators like Relative Strength Index (RSI), Stochastic, etc., fall to the oversold zone, it indicates that the cryptocurrency price may have bottomed out.
Market sentiment improves: Closely monitor market sentiment. When market sentiment shifts from fear to optimism, it may indicate a rebound.
Buy on dips: Regularly buy in batches at lower prices to reduce risk through averaging.
Low-cost dollar-cost averaging: Buy at fixed times or amounts when the cryptocurrency price drops to lower the average cost.
Timing to sell:
Price surge hits the ceiling: After a significant increase in cryptocurrency prices, touching resistance levels or forming reversal patterns like a double top usually indicates a selling opportunity.
Technical indicators overbought: When indicators like RSI and Stochastic rise to the overbought zone, it indicates that the cryptocurrency price may have peaked.
Market sentiment worsens: Keep a close eye on market sentiment. When sentiment shifts from optimism to pessimism, it may indicate a downturn.
Profit target: Set reasonable profit targets in advance and sell promptly to lock in profits once targets are met.
Stop-loss strategy: Develop a stop-loss strategy to automatically sell when the cryptocurrency price drops to specific levels to limit losses.
Other considerations:
Do not blindly chase highs or sell lows: Do not let market sentiment influence you into making reckless buying or selling decisions.
Thorough research: Before trading, conduct sufficient research on the project, market, and technical indicators.
Risk management: Never invest more than you can afford to lose, and diversify your portfolio to reduce risk.
Patience and discipline: Trading cryptocurrencies requires patience and discipline; do not rush to profit or avoid losses.
Frequent losses and being trapped, have you found the underlying reasons?
No matter how many points you are trapped in, there are reasonable solutions. Choose appropriate entry points to make up for losses and turn passivity into proactivity.
First is to make the following judgment based on the current position.
【1】Investors with slight losses can use rebound opportunities to exit or reduce their holdings at high points.
【2】Investors trapped at high positions can also reduce their holdings partially at high points, which allows them to take the initiative psychologically and financially in the next wave of market movements. Second, make the following judgment based on technical conditions.
【1】If trapped at a high position, one must stop losses immediately.
【2】If in a mid-position, you can observe based on the current situation, aiming for a release or reducing losses at high points.
【3】If in a low position, there is no need to rush to stop losses. After the purchased cryptocurrency stabilizes after a decline, one should dare to buy more at important support levels to average down costs, and rescue the high positions trapped during the next rebound.
Third is to make the following judgment based on trend conditions.
【1】If in an upward trend, there is no need to stop losses. Hold on patiently for a period of time, and you will definitely be freed, with even greater profit potential.
【2】If in a balanced oscillation trend, there is also no need to immediately stop losses. Patiently wait for the cryptocurrency to enter a high point in the oscillation cycle. Once it is freed from being trapped or the loss is minimal, one should decisively exit.
【3】If in a downward trend, once it is confirmed that a downward trend has formed, one should stop losses immediately and not harbor delusions of hope. Any hesitation or doubt may lead to deep entrapment that is hard to escape.
For reducing positions or cutting losses after being trapped, investors must act decisively and harshly, especially in a downward trend. Many investors have such experiences. After being trapped, they hope for a release every day. Finally, when the release comes, they feel reluctant: I've held it for so many days; I should at least make some money. As a result, they miss the best opportunity to exit. When the market re-enters a downtrend, they are trapped again. Ultimately, they become completely desperate, lose confidence, and cut losses to exit. This is the most taboo in a downtrend.
After being trapped, any action taken is passive. While freeing oneself from being trapped is a basic skill that investors must master, they should focus more on improving analytical skills and operational levels before being trapped, aiming to minimize the number of times they are caught, and always maintain the initiative in funds and mentality. This is the most important.
Special reminder:
Follow the trend of trading; operate in the direction of the market. Do not act stubbornly or resist the market. Check your personal profile! If trapped, seeking help everywhere? Be proactive by reducing risks early on and following the correct mindset! Directly making money from nothing, we are here to support you. Those who are reluctant to give up will only remain stagnant. To go further, who you walk with is key!
A single profitable trade speaks louder than a thousand words. It is better to take a bold risk rather than face repeated defeats! Frequent operations are not as valuable as precise trades. What you need to do is find me, and what I need to do is prove that my words are not empty. May our acquaintance begin with words, resonate with character, be trapped in technology, last long in kindness, and ultimately be about integrity.
Understanding trading is similar to a process, moving from seven losses to two breakevens and then to one profit—it's all about being single-minded and not greedy for various profit models. Firmly sticking to one trading system will eventually make this system your cash machine over time.
