To friends who are new to the circle
1. Stay away from the obsession with hot coins and take profits from altcoins in a timely manner: Once profits from altcoins meet expectations, be sure to exchange them in a timely manner and do not pursue "eating from start to finish." Altcoins lack the logic for sustained price increases, and after the hype subsides, they can easily fall back to their original point, as evidenced by previous cases like FIL and LUNA.
2. Beware of high-level inducements and seize opportunities for low-level wash trading: After the coin price stabilizes at a high level and then rises, decisively reduce positions or exit to avoid falling into the trap of inducement by the main force; if after stabilizing at a low level it creates a new low and quickly rebounds, it is likely the main force is doing the final wash, at which point one should firmly hold the position.
3. Determine coin price trends based on market conditions: When the overall market is sluggish, if the coin price stabilizes against the trend, it is likely to rise, while a slight rise against the trend may lead to a significant increase; when market conditions are good, the coin price stabilizing against the trend can easily lead to a slight decline, while a slight decline against the trend can trigger a significant drop.
4. Increase positions when profitable, and do not average down when losing: This principle may overturn the understanding of most beginners. The correct operation is to increase positions when the coin price breaks through previous highs, rather than averaging down during a decline—blindly averaging down will only enlarge losses and ultimately lead to passivity. Be sure to "cut losses short and let profits run."
5. After confirming the bottom, firmly hold trend coins: If it is confirmed that the coin price is in the bottom range, it will often present an "advance two, retreat one" rising rhythm, especially during an upward trend phase, where the coin price often accompanies both surges and wash trading; at this time, do not exit easily, as patiently holding may bring surprises.
6. First look at sectors when selecting stocks, and refuse to operate blindly: First-class investors prioritize attention to hot sectors (high popularity, high win rates), and then select tokens within those sectors; those who only focus on the trend of a single coin are second-rate, those who rely on indicators to enter are beginners, and those who buy and sell randomly without logic are gambling.
7. Volume and price are fundamental, indicators are supplementary: All technical indicators are calculated based on coin price and trading volume; blindly believing in indicators without volume and price analysis will make trading difficult. Real technical analysis requires a focus on volume and price—price increases cannot happen without significant capital support.
8. Different trends have different focuses: In an upward trend, operating based on support lines has a higher success rate; a pullback to support levels presents a good buying opportunity; in a downward trend, resistance lines are key references, and when touching resistance levels, one can choose to short or exit. #etf $BTC $ETH
