1. Covering positions to protect the principal and seeking extravagant profits is greed. When trading cryptocurrencies, there will always be a few coins that are stuck. At this time, remember not to dream of turning losses into profits. Being eager for quick success will only make you sink deeper and deeper. Honestly cover positions and protect the principal, so that you can have a steady income for a long time.
2. When a wave rises on the calm surface, beware of the big waves behind. The currency market appears calm on the surface, but undercurrents are surging. Do not be fooled by the small increase in the present, stay alert and beware of the big shocks that will follow.
3. After a big rise, there will be a correction. The K-line draws a triangle for many days. Don't be too excited when the price of the currency soars. Because after that, there will inevitably be a correction. Look at the K-line, isn't it an equilateral triangle drawn for many days?
4. Buy Yin, not Yang; sell Yang, not Yin. Go against the market and you will be a hero. Buy when Yin is falling and sell when Yang is rising. Do the opposite and you will win by surprise.
5. Don’t sell when the price is high, don’t buy when the price is low, and don’t trade when the price is sideways. Don’t rush to sell when the price is high, and don’t rush to buy when the price is low. When the price is sideways, you should hold back and wait and see.
6. Look at the support level in an upward trend and the resistance level in a downward trend. When the price of the currency is rising, pay attention to the support level to prevent a fall. When the price of the currency is falling, pay attention to the resistance level so as to buy at the bottom.
7. Full position operation is a taboo. It is not advisable to act on one's own. You must know when to stop when the market changes. You must enter and exit freely and wait for opportunities. Do not operate with a full position and bet everything on one throw. The currency market is impermanent. You must know when to stop and enter and exit freely. Only by waiting for changes can you seize the best opportunity.
8. Cryptocurrency trading is all about mentality. Greed and fear are the biggest harms. Be cautious when chasing ups and downs, and be calm and at ease. When trading cryptocurrencies, mentality is crucial. Greed and fear are our biggest enemies. Don't chase ups and downs, and keep a calm mind.
If a coin rises very fast but falls slowly, it is likely that someone is quietly collecting chips and preparing for another wave of rise. This is like buying something, if the price rises quickly but falls slowly, it means that someone wants to buy more.
On the other hand, if a coin falls very fast but rises slowly, it may be that someone is secretly selling it and the market may be going downhill. This is like selling something, the price drops quickly but rises slowly, which means someone is in a hurry to sell it.
When a coin reaches its highest point and the trading volume is still very large, don’t rush to sell it, as it may continue to rise for a while. But if the trading volume becomes smaller, you have to withdraw quickly because the upward momentum may be insufficient.
If a coin falls to the lowest point and the trading volume suddenly increases, don’t rush to buy it, it may have to fall for a while. But if the trading volume is always large, it means that someone has been buying it, so you can consider buying it.
Cryptocurrency speculation is actually speculation on everyone's emotions, and public opinion is the market's trading volume. If everyone is optimistic, the price of the currency will rise; if everyone is pessimistic, the price of the currency will fall. Trading volume is the embodiment of everyone's buying and selling behavior.
In fact, everyone understands these principles, but the key is that you can't control your hands and your mentality. Therefore, you have to learn to avoid risks when trading cryptocurrencies and listen to others' advice. When you don't see the market well, ask someone and don't figure it out on your own.
