1. Hot coins should not be clung to; when altcoins have made a profit, it is time to exchange them. Trying to ride the wave from start to finish is bound to end in disappointment. The reasoning is simple: altcoins cannot keep rising forever. Once you have traded, you must exchange; otherwise, if the price drops back to the starting point, all efforts will have been in vain. For example, take FIL and LUNA from previous years.

2. When the price is consolidating at a high level, prepare to sell; when it is consolidating at a low level with new lows, a good opportunity is likely to arise. When the coin price consolidates at a high level and then reaches a new high, be wary of the main force trying to induce buying; do not hesitate to reduce your position or exit. Conversely, when the coin price consolidates at a low level and then hits a new low, but quickly rebounds, it is likely the main force is making one last sweep, at which point you should remain steadfast and unwavering.

3. When the market environment is poor, coin prices will rise against the trend, and small rises against the trend may lead to large increases. When the market environment is good, coin prices will slightly fall against the trend, and small falls against the trend may lead to large decreases.

4. Make more money before increasing positions, and don’t average down when losing. This may break the understanding of many seasoned traders. We should increase our positions when the coin price breaks through previous highs, not when it keeps falling. Averaging down will only increase losses, and in the end, you’ll be stuck. You must cut losses and let profits run.

5. As long as you identify the bottom price, there will generally be a rise of two steps forward and one step back. At this time, do not doubt; generally, a big surprise follows, especially during a trend increase where prices rise while washing out positions. Do not exit lightly.

6. A first-class player looks at sectors first, a second-class player only looks at individual coins, a third-class player looks at indicators, and the lowest-class players only gamble. This means that when we want to buy a certain coin, we should first look at the sector. Only by focusing on hot sectors will the popularity and win rate be high. Next, we look at the tokens; those who only look at indicators are novices, and those who look at everything are gamblers.

7. The indicator changes with volume and price, so volume and price are the source of the indicator. If you don't look at the volume and price signals, trading cryptocurrencies will lead to frowns. All indicators are calculated based on the coin price and trading volume, so real technical analysis requires looking at volume and price. Price increases require a large amount of capital to drive them.

8. In an upward trend, look for support; in a downward trend, look for resistance. When the coin price is rising, operating based on support lines has a high success rate, providing opportunities for buying on dips. In a downward trend, operating based on resistance lines has a high chance of success, allowing for short positions or exit opportunities.

Chen Xi only does real trading; the team still has positions available to jump in quickly #Binance Alpha launches $BTC #新手必看