Having experienced ups and downs in the cryptocurrency world for many years and through countless attempts and summaries, I have gradually derived some valuable experiences. I share them with everyone in hopes that these principles can help you take fewer detours in this volatile market and avoid unnecessary losses.
Luck and hesitation:
A mindset of luck is an accelerator of risk, while hesitation lets opportunities slip away. The market changes rapidly; once a decision is made, execute it decisively, as hesitation often leads to missed opportunities.
Long-term investment is gold, short-term investment is silver, and swing trading is diamond:
Long-term investments appreciate steadily, short-term trades bring quick profits, and swing trading can precisely seize the most favorable opportunities amidst market fluctuations. It is the trading method most worth pursuing.
Don’t easily go all in:
Position control is key to maintaining a stable mindset. Keeping a moderate position allows you to remain calm amidst fluctuations and respond flexibly to different market changes, enabling both offensive and defensive strategies.
Eat fish in the middle section, leave the head and tail for others:
Extreme market fluctuations usually occur at the tops and bottoms; capturing the middle section of a swing is the most ideal strategy. Leave the head and tail for those adventurers and focus on steadily profiting in the middle section.
Frequent trading will surely lead to losses; indecision gradually leads to bleeding:
Frequent trading increases risk and costs, while indecision often leads to gradual losses. Stay rational and calm, and don’t change your decision easily once made.
Mindset is the first in trading, strategy is second, and technique is third:
In the cryptocurrency world, a stable mindset is the cornerstone of success. Techniques can improve chances, but strategies and mindset are the keys to determining success or failure.
Market trends emerge in despair, develop in hesitation, and end in madness:
Market bottoms are often accompanied by despair, while tops are often formed in madness. The key is to remain calm in despair and exit in time during madness.
Greed is the killer of profits; greed and fear are the greatest enemies of investment:
Greed and fear are the biggest enemies leading to failure; controlling emotions and setting reasonable goals are the fundamentals of steady profits.
Opportunities arise from declines; trading cryptocurrencies is trading the future:
Market opportunities often emerge during downturns; we invest not in the current coins but in their future potential. Buying is confidence, holding is patience, and selling is determination.
There are no absolutely accurate indicators, only retail investors who know how to use them and those who do not:
Indicators are just tools; the key lies in how they are used. Retail investors without systematic analysis who merely rely on indicators often incur more losses.
No stop-loss in trading means losses will surely magnify:
Not setting a stop-loss is the biggest mistake; market reversals often occur when you insist on not setting a stop-loss. Timely stop-loss and risk control are the foundation of sustained profits.
When others are fearful, we should be greedy; when others are greedy, we should be fearful:
Contrarian thinking is the key to success. In extreme market emotions, it is your opportunity to seize. Buy when others are fearful, and sell when others are greedy, to go further.
Novices watch price, experienced traders watch volume, experts watch momentum:
Novices often focus on price fluctuations, experienced traders pay attention to trading volume and market sentiment, while experts look at the overall market trend and follow the trend to remain undefeated amidst changes.
These principles are not set in stone, but they can help you maintain clear thinking in a complex market, reduce unnecessary losses, and enhance opportunities for long-term profits. Remember these lessons to go further in the cryptocurrency world!