Always remember the following points, and you will navigate the crypto world with ease!
1. Averaging down is not to make big money, but to reduce losses. If you're stuck, don't think about making it back with a rebound; that's asking for trouble. The purpose of averaging down is to minimize losses, so don’t let a temporary setback cloud your judgment.
2. A calm market often hides great volatility, so don’t be misled by short-term stability. The market is unpredictable; one day it could change drastically. Remember, after a big rise there will be a pullback. Be cautious when the K-line forms a triangle; if it rises too much, a pullback is certain, so be careful not to get stuck at a high point.
3. Timing your trades is crucial. Remember, buy on a down day, sell on an up day. When others panic, you must be brave to buy; when others are euphoric, you must decisively sell. Experts operate against the market trend. Don’t sell when it peaks, and don’t buy when it plunges; absolutely don’t act during sideways movements. Pay attention to resistance levels during uptrends and support levels during downtrends, this way you won’t panic.
4. Being fully invested is a big taboo; flexibility is key. The crypto market is unpredictable, and position management is paramount; being adaptable is crucial.
5. Mindset is very important; greed and fear are the greatest enemies. Chasing rises and cutting losses will only lead to greater losses. Maintaining a calm mindset is essential to standing firm in the market.
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