Cryptocurrency spot trading + tips: Everyone knows it, but those who can really make money do it this way!
Today we are going to talk about how to do spot trading in the cryptocurrency circle. Many people always think that they can’t make money from spot trading. In fact, the key lies in whether the method is right.
Whether your mentality is stable or not.
Let’s talk about the transaction cycle first
Many friends always like to go in and out every day,
In fact, it is easy to lose money this way.
For spot trading, I just look at the daily chart. I suggest you either do a medium-term of 2-3 weeks or a long-term of 2-3 months. Why?
Only in this way can we truly seize the great opportunities in the market.
The three most useful indicators
To be honest, you don't need too many flashy indicators to watch the market; mastering these three is enough:
Moving Average: This is the simplest; just look at the daily line. If the price is above the moving average, it's strong; if it retraces to the moving average, that's a buying point. Remember, the moving average must be trending up for it to be a real bull market.
Discount Price+: This indicator is particularly useful. For example, if the current price is 20% cheaper than it was 60 days ago, that's a discount; the cheaper, the better to buy. If the discount exceeds 30%, then it's a clearance sale, and you can buy more.
Panic Index+: This is like a thermometer for the market. An index below 30 indicates market panic; below 20, panic intensifies; below 10, it's practically a giveaway, and this is when you should boldly buy.
The safest way to buy.
Never go all in at once; that's too risky. It's advised to divide your money into 4-5 portions, and you can buy the first part when the Panic Index falls below 20. If the market continues to drop, keep buying, and your cost will get lower and lower. (Be careful not to use all your funds, and definitely avoid borrowing money to invest, as this can greatly affect your trading mindset.)
Before buying, remember to check where the moving average support is, how much of a discount there is, and how panicked the market is. Only when these are correct is it a good buying point.
Holding is the key.
Buying is easy, holding is difficult. Many friends want to sell as soon as the price rises a bit and run away when it drops a bit. In fact, a good buying point should be given time to rise slowly.
However, this doesn't mean you should hold on indefinitely; you need to learn to sell in batches. How to sell? We start by setting a date: sell a portion in the 2nd week, another portion in the 3rd week, and clear out in the 4th week. If your technical skills are better, you can continue to watch the candlestick charts and buy back based on market conditions. If you're a beginner, just aim to catch the first wave; don't think about capturing the entire upward movement. Once you have that mindset, although you may profit more in the short term, in the long run, it will lead to losses. Of course, if you understand the market well, you can also keep a portion as a base position.
A must-read for beginners.
When starting out, definitely begin with small positions; you won't feel bad if you incur losses. Record every trade: why you bought, why you sold, and gradually, you'll find your rhythm. Once you become proficient, increase your position size to avoid large losses.
Avoid those pitfalls at all costs.
Don't enter and exit every day; day trading has high technical requirements, so assess your own level accurately.
Don't chase if it has risen too much, and don't kill it if it has dropped too much; always set a stop-loss, as this is life-saving.
Never go all in; leave yourself some room.
Lastly, let me share some heartfelt words.
The market has 2-3 major opportunities every year; there's really no need to watch the market every day. The key is to be patient, prepare your funds, and act when you see an opportunity.
Remember:
Never borrow money to trade cryptocurrency.
Position control is the most important.
Better to miss out than to make a mistake.
The market is always there; opportunities do not disappear.
Money can never be fully earned, but it can be completely lost.
Many people know these principles, but not many can actually follow them. If you can control your greed and fear and strictly implement these strategies, you have already surpassed most people.
The key is: the method must be right, the mindset must be stable, and execution must be strict. If you accomplish these three points, I believe you can make money in spot trading in the crypto circle! If you currently feel helpless or confused in trading and want to learn more about the crypto world and get the latest information, follow me, and you won't get lost in this bull market!
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