Tips for learning to trade cryptocurrencies unveiled:
1. Invest with spare money; avoid borrowing to trade cryptocurrencies—invest money + invest energy.
2. Strictly filter value coins and create a reasonable fund allocation plan that aligns with reality—Sunny Investment Strategy.
3. Averaging down—it's normal to have pullbacks after entering a position, so allocate funds reasonably and enter in batches.
4. Refuse to go all in, allocate positions reasonably, do not put all your eggs in one basket, effectively reducing risk.
5. Keep an eye on the surroundings—pay attention to cryptocurrency news and the latest financial updates, knowing early means understanding early and making money early.
6. Think in reverse; do not confront the market or the trend, but let things take their natural course.
7. Open contracts without going all in, using leverage of five times or less, and do not easily use 100x leverage. It's best to avoid leverage altogether, seeking stable profits instead of overnight wealth.
8. Manage your profits well—managing your positions is more important than anything else. If you are uncertain, do not operate lightly; not operating incurs no risk and thus avoids losses. Regularly check your assets to see if they are being managed effectively and reasonably.
9. Keep the bottom and top in mind, do not fear; the cryptocurrency market will only help you grow. A good mindset is more important than operations. Remember the methods of cryptocurrency trading; do not worry about not making money!
The secret to a tenfold return: efficient methods for trading cryptocurrencies, helping you double easily!
Master low-cost chips, invest steadily, and do not be swayed by market noise. When investing in cryptocurrencies, you must first realize that acquiring low-cost chips is not easy, and they should never be easily taken away by market fluctuations. Stay firm in your beliefs, remain calm, and prevent yourself from being disrupted by strategies like wash trading or dumping. Chasing prices and operating with full positions are often major investment taboos. If the overall market trend is good, accumulating positions in batches during declines can more effectively control risks, with lower costs and greater profit margins. The key lies in reasonable distribution of returns, maximizing the vitality of funds, rather than blindly increasing positions.
When the market rises rapidly, lock in some profits promptly and seek stability; when the market falls sharply, do not panic and withdraw, but maintain your main positions and stabilize your mindset. Avoid speculative tricks, do not be greedy for quick gains, and do not fear market fluctuations. Always maintain a steady mindset to avoid operational errors.
Early low-price layouts or private placements of low-priced coins stem from predictions based on market experience and future potential, whereas trading in the secondary market relies more on technical and information analysis. Clearly distinguish between the stages to ensure each step has a clear logic and direction.
Build positions and exit: layer by layer, controlling risk and returns.
Investing in cryptocurrencies is a complete process from building positions to exiting. It is crucial to operate in layers and stages. Gradually widening price segments effectively controls the risk and profit ratios, creating more flexible operational space. Investors should also familiarize themselves with the interconnected effects and observe the movements of multiple cryptocurrencies. Each cryptocurrency’s performance in the market is interrelated; while they appear independent on the surface, they actually influence each other. Reasonably allocate positions between hot and value coins to balance investment risk and profit returns; being overly conservative may cause missed opportunities, while being overly aggressive may lead to high risks.
Value coins have higher stability, while hot coins fluctuate wildly. Proper allocation is crucial.
Balanced mindset: Fund management and risk prevention: maintain a balanced mindset.
In cryptocurrency investment, maintaining account liquidity—having coins on the market, money in the account, and cash in hand—is crucial to coping with market uncertainties. Never gamble all your capital; allocate funds reasonably and master risk control. This enhances the stability of your investment mindset and effectively controls risks. Investing with spare cash instead of borrowed capital is the foundation of investment. Master basic operational techniques and thought processes, develop a habit of recording and summarizing, and treat the high and low data of each operation as valuable experience to gradually cultivate the ability to filter information and make decisions.
Grasp the elements of successful investment:
1. Investment should not rely on luck.
If your profitable trades exceed your losing trades, and the total account value shows growth, it indicates that your investment strategy has become stable. However, if nine out of ten trades are profitable and one loses all profits, leading to a decrease in total account value, you need to reflect. Investment should not be made with heavy positions easily; if the direction is wrong, decisively stop-loss and re-plan the next step.
2. Trust yourself, do not be distracted.
Many times, our initial judgment may be correct, but under the influence of others, we hastily change direction and end up missing out on gains. Investors must have firm beliefs, as truth often rests in the hands of a few. Firm confidence is key to winning in the market.
3. Master trading skills.
The cryptocurrency market has its unique rules; acting in accordance with the trend is the basic principle, as counter-trend operations can often come at a high cost. Therefore, when trading, you should combine technical analysis with market dynamics and try to avoid counter-trend operations. Focus on improving your technical skills to enhance your sensitivity to market changes.
4. Strengthen risk control. Cryptocurrency investment is high risk and high reward; every trade needs proper risk anticipation. Enter with light positions, increase positions along with the trend, and avoid blindly going heavy. Set take profit and stop-loss for every trade to avoid greed or hesitation, thus maintaining investment flexibility and risk control.
5. Grasp the timing of entry. Many investors are easily attracted by market fluctuations, hastily entering positions, but if the entry point is inappropriate, it can lead to losses. It is more important to wait appropriately and choose the right opportunity for entry. Patiently wait for favorable market conditions; do not rush into the market due to impatience.
6. Decisively exit to avoid hesitation. Hesitation when exiting can lead to significant losses for investors. When profits reach expected targets, exiting promptly is more reasonable than blindly pursuing higher returns. Avoid letting greed turn profits into losses. Similarly, when losing, stop-loss must be implemented promptly, abandoning any luck-based mindset, to avoid worsening losses. Just eliminate restlessness; investment is a long-term process, and fluctuations in gains and losses are normal phenomena.
7. Maintain a stable mindset.
Maintaining a good mindset helps better face future fluctuations. The market is unpredictable, and no one can always maintain accurate judgments. When facing failure, summarize lessons, adjust your state, and continuously optimize strategies to ultimately achieve stable profits.
8. Pay attention to news and combine it with technical analysis. News has a significant impact on market trends; often, a major news event can overturn the existing technical setup. Therefore, when making trades, it is necessary to integrate news and technical analysis for a more comprehensive judgment.
9. Maintain sufficient funds and use them wisely. If investment funds come from borrowing, the mindset will become impatient, and operations will be restricted. Cryptocurrency investment should use spare funds, which stabilizes the mindset and allows for more flexible position increases and lock-in operations.
The core elements of successful investment: steady operations and team support.
For investors who cannot filter quality coins, it is advisable to pay attention to professionals with mature strategies and solid experience. Whether in spot trading or futures contracts, slight intervention at the right time is enough. Opportunities are fleeting, so grasping the rhythm is more important. Cryptocurrency investment requires assessing the situation and choosing the right entry and exit points. Successful investment relies not only on luck; choice is more important than effort, and the circle determines fate. Paying attention to capable teams and following experienced guides can undoubtedly help you navigate the cryptocurrency market and seize greater opportunities.
Investing in cryptocurrencies is full of opportunities and challenges, with the potential for steady profits but also significant risks. Therefore, staying calm, mastering the rules, and learning analytical tools is the only way to success.
Trading views:
1. A sharp drop is a test and a touchstone.
2. Listen less to rumors, as opinions are neither right nor wrong.
3. Trading cryptocurrencies is actually trading oneself.
4. Trading is a process of cultivating the mind, self-discipline, and personal growth.
5. The difficulty in trading lies in execution; persistently repeat one method.
6. Intervene decisively when a main upward trend forms and has not significantly increased in volume.
7. When the trend is upward, there is no need to look at other indicators besides trading volume.
8. Consider selling if there is no fluctuation three days after a short-term purchase.
9. If a stock drops 50% from a high and falls for eight consecutive days, it has entered an oversold channel and can be followed for a rebound.
10. Trade leading coins because they rise the most in a bull market and are the most resilient in a bear market.
11. Embrace the trend and act accordingly.
12. Do not let profit cloud your judgment.
13. Do not trade for the sake of trading.
In the cryptocurrency market, being adaptable is the most incorrect approach.
Apply a fixed trading system to deal with changes. Sticking to one method is more effective than frequently changing methods.
Sharing some insights from speculative trading.
At different stages of life, experiences and insights will greatly change our thoughts.
The same applies in the speculative market; from the initial entry into this market to the first, second, and third years, each year brings different feelings, and the understanding and experience of speculative trading continue to grow. Only by continuously thinking and summarizing the market over the years can one gain insights.
Today I would like to share some insights from my experience in the speculative market for your reference.
Success equals small losses plus various profits accumulated over time.
Avoiding significant losses is simple: prioritize survival. When dangers obstruct this principle, abandon all other principles.
The way of trading is to defend an undefeated position and attack the enemy that can be won.
Many people perform excellently in simulations, even doubling their accounts in a few weeks. However, once they start trading live, they often incur losses. Their most common behavior is to continue researching technical analysis methods, constantly trying to improve their success rates, hoping to earn money as a result.
In fact, this approach is a detour and unnecessary. Generally, technical analysis accounts for only about 20% of overall trading skills, and its importance is not significant. Many experts have low success rates yet continue to make money. If your simulated trading performance is very good, it indicates that your skills are excellent, and there is no need for further research or improvement. You should focus your energy on other areas, such as fund management, position increasing, and grasping long-term trends.
You must hold onto your good cards while reducing your bad cards. If you cannot stick to your good cards, how can you compensate for the losses caused by bad cards? Many quite good traders end up giving back all their profits because they are unwilling to stop trading when they are losing money. When I am losing, I tell myself: you cannot continue trading; wait for clearer market conditions. When you have good cards, you need to hold them patiently; otherwise, you will never be able to make up for the losses caused by bad cards.
One of the most common mistakes many traders make is trading too frequently. They do not carefully select the right trading opportunities. When they see market fluctuations, they want to enter the market, which is forcing themselves to trade instead of patiently waiting for good trading opportunities.
We can profit because we have patiently done a lot of work before entering the market. Many people become complacent after making a profit, leading to frequent operations, and the subsequent few losses can overwhelm them, resulting in significant losses, even erasing their initial capital.
Every time I enter the market, I always set a stop-loss point in advance, as it is the only way I can sleep peacefully. I always avoid placing stop-loss points at price levels that the market could easily reach. If your analysis is correct, the market should never retrace to the stop-loss price. If the market reaches the stop-loss point, it indicates that this trade was a mistake.
My worst trade stemmed from impulsiveness. Based on my trading experience, the most destructive mistake in trading is being overly impulsive. Anyone making trades should follow established trading signals and must not hastily change strategies due to sudden impulses. Therefore, avoiding impulsiveness is the first rule of risk control.
I have been trading for over 10 years. If I had not learned to remain calm early on, I would have been driven crazy by the extreme ups and downs of my trading career.
Traders are like boxers; the market can hit you hard at any time, and you must remain calm. When you are losing, it indicates that the situation is against you. Don’t rush; take your time, and minimize your losses as much as possible while protecting your capital. When you suffer a significant loss, your emotions will be greatly affected. You must reduce your operations and consider your next trade after a while.
Why can I achieve such a high profit rate? It is because I fear the market's unpredictable changes. I find that successful traders are usually those who fear the market. The fear of market trading compels me to choose the right timing for entry. Most people do not wait for the market to clarify before entering; they always rush into the forest in the dark, while I always wait until dawn to enter. I do not predict the direction of changes before a market movement; I let the market's changes tell me the direction of movement. Choosing and waiting for foolproof opportunities to strike is crucial; otherwise, I have to give up. This is my most important trading principle.
Do not let the joy of profits cloud your judgment. Remember, the hardest thing in the world is how to sustain profits. Once you make money, you will want to earn more, which may lead you to forget about risks and doubt the correctness of your established trading principles. This is the reason for self-destruction; therefore, you must remain cautious at all times. Be extremely careful when losing money and even more so when making profits.
Trading strategies must be flexible to respond to market changes, showcasing your highly cautious approach. The most common mistake among traders is that their trading strategies remain unchanged. They often say, 'Why is the market completely different from what I expected?' Why should it be the same? Life is not always full of certainties. When your important stop-loss point is broken by the market, it is likely to encounter volatility or trend reversal. How can you continue with this trend at that time? Therefore, you must be very cautious and wait for things to become clearer, rather than hastily continuing to operate.
Before entering the market, calm down and think more.
Consider how many professional skills you have to support your fight in the market.
Consider whether your mindset can withstand the ups and downs of the market.
Think about whether your limited funds can handle unlimited opportunities and losses.
There are many nautical charts for sunken ships on the sea floor.
The most important factor for trading success lies not in the rules used but in your self-discipline.
Time determines everything.
Life is not just a battle of strategies; in some ways, it is also a competition of time and life. If Buffett lived 10 years longer, even a mere 5% annual profit would significantly increase his wealth, allowing him to dominate the world.
Remember to avoid overtrading.
The speculative market is a free market where trading can occur at any time. At any given time, there is always a market open globally, and there are dozens of speculative products available for trading profit opportunities at different times. Many traders develop the habit of constantly monitoring the market, which can lead to impulsive trading multiple times a day, unwittingly increasing their positions to dangerous levels.
Overtrading not only increases your trading costs but also traps you in a self-defeating dilemma of trading for the sake of trading.
Grasping market trading and speculative opportunities can yield many profits, but not every trading opportunity is worth pursuing. Funds and personal energy are always limited, and maximizing their value is essential. This means you should only enter the market when significant market movements occur; one profitable trade should outweigh several small profits, saving energy while maximizing returns.
Focus on opportunities for price breakthroughs.
Breakthroughs in market prices, especially at key points, are important opportunities for profit emergence. When market prices are in a prolonged consolidation phase, any breakout accompanied by trading volume, whether upward or downward, is a good time to establish new positions.
Formulate a trading plan and risk control strategy.
Speculative trading must be accompanied by risks due to leverage, which can cause fatal harm. Therefore, before trading, you should formulate preventive measures for various emergencies, such as how to set stop-losses, and the implementation of increasing or decreasing positions is crucial.
Summarize your past trading mistakes.
For every operational mistake in trading, we must record it in detail, investigate the reasons and various related factors, and regularly check if we are repeating mistakes. Only in this way can you progress more quickly.
If you still feel confused and don’t know how to get started in this market, comment 333 to get on board!
