Never do these three things when trading.

I am 35 years old this year. Ten years ago, I entered the cryptocurrency space with only 50,000 to start my trading career. Now my assets exceed 50 million. There is a very foolish way to trade, but this method can almost eat up all the profits, so learn gradually. First, we should never do three things when trading.

The first thing is to never buy when the price is rising, to be greedy when others are fearful, and to be fearful when others are greedy. You should buy when the price is falling and make this a habit.

The second thing is to never over-leverage.

The third rule is to never be fully invested. When fully invested, you become very passive. Moreover, this market is never short of opportunities, and the opportunity cost of being fully invested can be very high.

Let's talk about the six rules for short-term cryptocurrency trading.

The first rule is that after the price of a cryptocurrency consolidates at a high level, there will usually be a new high. Conversely, after consolidating at a low level, there will usually be a new low. Therefore, we should wait until the direction of the trend change is clear before taking action.

The second rule is to avoid trading during sideways markets. Most people lose money in cryptocurrency trading because they cannot adhere to this simplest principle.

The third rule is that when selecting candlestick patterns, we should buy when there is a bearish candle and sell when there is a bullish candle.

The fourth rule is that when the decline slows down, the rebound also slows down, and the decline accelerates the rebound.

The fifth rule is to build a position using the pyramid buying method, which is the only unchanging principle of value investing.

The sixth rule is that when a cryptocurrency continues to rise after a prolonged decline, it will inevitably enter a sideways trading phase. At this point, we do not need to sell everything at a high price, nor do we need to buy everything at a low price. Because after consolidation, there will inevitably be a change in trend. If the trend changes downward from a high point, we need to clear our positions in a timely manner. In short, we need to act promptly.