This is some experience shared by a friend of mine from the cryptocurrency world for a decade who made tens of millions! My friend is free and has a lot to share!
1. When the market crashes, if your coin only drops slightly, it indicates that there are market makers protecting it from falling. Such coins can be held with peace of mind, and there will definitely be rewards in the future.
2. For beginners trading coins, there is a simple and direct method: for short-term, look at the 5-day moving average; as long as the coin price is above the 5-day line, hold it, and sell once it falls below; for medium-term, look at the 20-day line, if the coin price is above the 20-day line, hold it, if it falls below, sell. The method that suits you best is the right one, and the key is to stick to it.
3. If a coin's main upward trend has formed and there is no obvious volume increase, then buy decisively. Continue to hold during volume increase, hold if there is a decrease in volume but the trend is not broken; if there is a volume decrease and it breaks the trend, then reduce your holdings quickly.
4. After a short-term purchase, if there is no movement in the coin price within three days, sell if possible. If the coin price drops after purchase, and losses reach 5%, then cut losses unconditionally.
5. If a coin has dropped 50% from its high and has fallen for 8 consecutive days, it indicates that it has entered an oversold state, and a rebound may happen at any time; consider following up.
6. When trading coins, choose leading coins because they rise the fastest when they go up and are more resistant when they go down. Don’t buy just because the coin price has dropped significantly, and don’t avoid buying just because it has risen a lot. Trading leading coins is most important when buying at high levels and selling at even higher levels.
7. Trade in accordance with the trend; the buying price is not necessarily better the lower it is, but rather how suitable it is. Don’t hastily call a bottom during a decline; abandon those coins that are not performing well. The trend is the most important.
8. Don’t let temporary profits make you impulsive; know that sustained profits are the hardest to achieve. Review your trades carefully to see if your profits are due to luck or skill. Establishing a stable trading system that suits you is key to continuous profitability.
9. Don’t force trades when you don’t have enough confidence. Staying in cash is also a strategy, learning to stay in cash is important. The first consideration in trading should be capital preservation, rather than profitability. Trading is not about frequency, but rather the success rate.
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