Eight years of cryptocurrency trading experiences: Follow the rules, align with trends, and avoid five years of detours!
After eight years of trading, the first three years cost me 70% loss, and only then did I understand these survival rules. I can't guarantee you'll win every time, but I can help you avoid five years of detours:
1. Counter the "retail investor common problem", following the rules can save your life
• Retail investors often "hold on through losses and run away with profits". It should be the other way around: lock in profits at 10%, decisively cut losses at 5%. This discipline can save you countless times.
• After making a big profit, ensure to rest and not let a euphoric mindset be harvested by the market; don't operate recklessly when losing, wait for the right moment to re-enter when profits are expected.
2. Look for opportunities by observing trading volume, don't guess blindly
• Trading volume is the market's voice: a decrease in volume with a new high likely indicates room for growth; a decrease in volume after breaking through the 20-day moving average is almost a "money-making point".
• Remember the patterns: a rise with decreasing volume continues to rise, an increase in volume with stagnation indicates a peak, and a significant surge must correct.
3. Control positions, focus on mainstream, don't be greedy
• Don't stuff your account with seven or eight coins; at most two or three. It’s easy to lose control and flip, focusing on mainstream coins is more secure.
4. Follow trends, don’t predict, look for high odds opportunities
• For short-term, pay attention to the 5-day line; for long-term, watch the 20-day line. If it breaks the line, don’t cling to the battle; as long as the strong coins have enough popularity and turnover, they can often rebound after a drop, so look for these high odds opportunities.
• Daily patterns: don’t panic during sharp declines; rebounds often follow; be vigilant during explosive rallies at the close, as a correction is likely the next day.
Trading cryptocurrency is not difficult; the challenge is controlling oneself. Endure the mindset, endure the understanding, endure the execution ability. Opportunities abound, the key is to follow the rules. If you're unfamiliar with a coin or need analysis, feel free to communicate!
