The cryptocurrency world is full of temptations and traps. The vast majority of people come with the dream of 'I want to make a lot of money,' only to end up shouting 'I want to recover my losses.' If you want to make a successful comeback, please read carefully and hope you can gain some insights from it.
1. When the coin price enters a stable upward channel, each pullback is a temporary stopover and a good opportunity for us to get in. There is no coin that keeps rising indefinitely; pullbacks are like a compressed spring, preparing to jump higher.
2. If you enter a definite downward channel, any rebound is an opportunity to exit. Once the trend goes bad, it may take a long time to rise again, so don’t fight the trend and don’t waste your time.
3. Short-term fluctuations are influenced by emotions and fundamentals. In the long term, don’t fixate on the current small gains; just like the current market sentiment, the fundamentals determine the length and width of the rise.
4. Manually judged bottoms are usually not true bottoms but halfway up the mountain. The formation of a true bottom can be seen through emotions and capital. So never blindly catch a falling knife; often, 10 attempts result in 9 failures.
5. Don’t rely too much on positive news. Real market movements are about playing expectations. Many retail investors like to listen to news to trade cryptocurrencies, but most of what you hear is what others want you to hear. Even if it’s true, you don’t know how many hands it has passed through; by the time you find out, the market might be ending.
6. Don’t arbitrarily increase leverage, as this will not improve your winning rate. Once you incur losses, the numbers will be magnified infinitely, so don’t increase your risk.
7. Set your stop-loss and take-profit levels! Set clear targets for yourself: decisively stop-loss when it drops to a certain level and sell when it rises to a certain level. Don’t focus on the rise for too long; many people lose money in a bull market simply because they can’t take profits in time.
