From being liquidated three times while sleeping in a bridge tunnel to now having stable monthly profits, it’s not luck; it’s based on these five rules earned through blood and tears 💪👇
1. Do not be attached to hot coins; when meme coins have reached a certain level of profit, it’s time to exchange them. Trying to ride a wave from start to finish is bound to be in vain. The reasoning is simple: meme coins cannot always rise indefinitely. After trading, it's time to exchange; otherwise, if they fall back to the starting point, it’s all just wasted effort, like last year's FIL and LUNA.
2. The price is consolidating at a high level and then pushing higher. Seize the opportunity to prepare for selling. When the price is consolidating at a low level and reaches a new low, a good opportunity is likely to appear. When the coin price creates a new high after consolidating at a high level, be cautious of the main force inducing buying. When it’s time to reduce positions or exit, don’t hesitate; when the coin price consolidates at a low level and then creates a new low, and quickly recovers, it is likely the main force is doing a final washout. At this time, one should remain firm and unwavering.
3. When the market environment is poor, the currency price may rise against the trend during sideways movement. A slight rise against the trend can lead to a large increase. When the market environment is good, the currency price may slightly decline during sideways movement, and a slight decline against the trend can lead to a large drop.
4. Only add to your position when making a profit, and do not average down when losing. This may break the understanding of many veterans. Our positions should be increased when the currency price breaks above previous highs, not when it keeps falling to average down. Doing so will only lead to larger losses and eventually becoming unable to act. It is crucial to cut losses and let profits run.
5. As long as you are certain about the bottom price, generally there will be a rise of two and a retreat of one. At this time, do not doubt it; usually, a big surprise follows, especially when trends are rising. It is always a simultaneous rise and washout, so do not get off easily.
6. First-class players look at the sector; second-class players only look at individual currencies; third-class players look at indicators; and the lowest-level players just gamble. This means that when we want to buy a certain currency, we should first look at the sector. Only by focusing on hot sectors can we gain popularity and increase our win rate. Next, we look at the tokens; those who only look at indicators are newcomers, and those who look at everything are gamblers.
7. Indicators change with volume and price, so volume and price are the root of indicators. If you don't look at volume and price but trust indicators, trading will leave you worried. All indicators are calculated based on currency prices and transaction volumes, so true technical analysis requires looking at volume and prices. Rising prices need significant capital to drive them.
8. In an upward trend, look for support; in a downward trend, look for resistance. When the price of the currency is in an upward trend, operating based on support lines has a high success rate and offers opportunities for low absorption during pullbacks. In a downward trend, there are high chances of success when operating on resistance lines, which allows for short positions or exit opportunities.
