Identification of high-quality coins: When the market falls sharply, if a certain coin falls less, it may indicate that there are dealers actively protecting the market and are unwilling to let the price fall further. Such coins usually have certain value support and can be considered for long-term holding, which is expected to generate returns in the future.
• Moving average trading method: For novices, the moving average is a simple and easy-to-use trading tool. For short-term trading, you can focus on the 5-day moving average. When the currency price is above the 5-day moving average, hold it. Once it falls below the 5-day moving average, sell it. For mid-term trading, use the 20-day moving average as a reference. When the currency price is above the 20-day moving average, hold the currency. When it falls below the 20-day moving average, exit. The key is to find a trading method that suits you, strictly implement it, and maintain trading discipline.
• Grasp the main rising wave: When the market shows a main rising wave and the trading volume has not increased significantly, it is a good time to buy decisively. During the main rising wave, continue to hold when the volume rises, and hold the stock when the volume falls but the trend has not been broken. When the volume falls and breaks the trend line, you should reduce your position in time to avoid risks.
• Short-term operation principles: After short-term purchase, if the currency price does not fluctuate significantly within three days, you can consider selling to avoid long-term capital occupation. If the currency price does not rise but falls after purchase, stop loss unconditionally when the loss reaches 5%. Stop loss in time can prevent further expansion of losses.
• Oversold rebound opportunity: When a currency falls more than 50% from its high and falls for 8 consecutive days, it may have entered an oversold state. At this time, the possibility of an oversold rebound is high, and you can consider following up appropriately, but you need to be cautious and make a comprehensive judgment based on other technical indicators and market sentiment.
• Selection of leading coins: When trading in coins, you should focus on leading coins. Leading coins have the largest increase when the market rises, and are relatively resistant to declines when the market falls. Do not buy blindly because the price of the coin falls, and do not be afraid to buy because of a large increase. The strong will always be strong, which is a common phenomenon in the market. When trading leading coins in the short term, buying at high prices and selling at higher prices is the key strategy.
• Trend trading concept: Following the trend is an important principle of cryptocurrency trading. The purchase price does not have to be the lowest, but it must be appropriate and in line with the market trend. Do not think that you have an advantage just because the purchase price is low, because there is no bottom for the falling market. Give up those junk coins with no trend and focus on high-quality coins with a positive trend.
• Treat profit rationally: Don’t be carried away by profit, but calmly analyze whether it is due to luck or strength. Continuous profit is the goal, so you should carefully review the market, constantly improve and optimize the trading system that suits you, and maintain stability and sustainability.