8 Survival Rules for Veteran Players in the Cryptocurrency Market: Help Me Avoid Every Round of Major Declines
After 10 years of struggling in the cryptocurrency market, I have summarized 8 rules that I must review before entering each time. It is thanks to these principles that I have managed to come out unscathed through one round after another of major declines. Today, I share them with those destined to find them, hoping to help you take fewer detours.
1. When entering short-term, don't just look at the K-line; the 30-minute line + market resonance is key. Relying solely on the daily line may lead to misjudgments, for example, mistaking a long upper shadow as a lack of opportunity, only to see a big bullish candle the next day—by checking the 30-minute line, one can often discover key signals, and combined with market stabilization, entry becomes more secure.
2. If the trend or order is not right, absolutely do not touch it. The core of trading cryptocurrencies is to follow the trend; once the trend deteriorates and the upward rhythm is broken, even taking a second look is a risk. Exiting in time is more important than stubbornly holding on.
3. For short-term trading, stay away from non-hot assets. Only hot or potentially hot assets attract capital, which can bring about short-term market movements; focusing on obscure coins not only wastes time but also makes it easy to miss opportunities—it's better to patiently wait for the next hotspot.
4. Eliminate impulsive entries; plan first. First, "plan your trade," clearly defining entry points, stop-loss, and take-profit; then, "trade your plan," not being swayed by emotions, avoiding pitfalls caused by impulsive decisions.
5. Others' opinions are for reference only; making your own decisions is reliable. The cryptocurrency market is filled with chaotic news, and anyone's analysis has limitations; ultimately, you must rely on your own thorough consideration and independent judgment to avoid being led astray.
6. First set the direction, then choose a coin. If the direction is right, selecting the right coin can achieve double the results with half the effort; if the direction is wrong, even the best coin will struggle to find momentum. Rather than struggling in the wrong track, it’s better to first identify the major trend.
7. Do not guess the bottom; only pursue coins that are on the rise. Always thinking about "buying the dip" is a big taboo. What seems to be a rebound may still undergo one last ultimate shakeout. Stock prices always move toward areas of less resistance; only entering coins that are currently rising is truly following the trend.
8. After a big profit or loss, first go to cash and review. This is the most core experience I've gained over the years: after a big profit, it's easy to become complacent; after a big loss, it's easy to become anxious. At this time, being in cash and calmly analyzing the reasons for gains and losses before re-entering can increase the probability of being right to over 90%.
