I just had tea and a chat with a big cryptocurrency trader. He said he entered the crypto world with 400,000, went down to just 80,000, and now has assets worth 10 million. What changed his fate was his persistence in learning and improving his understanding. He summarized five key insights, full of valuable content, hoping to inspire friends who come across this!
1. Do not rush to stop losses during a big drop in the morning; it is often an overreaction to negative news from the previous night. You can wait for market recovery and reversal. Do not blindly chase after a surge at the end of the day; some major players like to test the waters and induce buying, then open lower the next day to accumulate.
2. Make good use of trading volume as a practical technique; volume can indicate future market direction. If there is a sustained increase on low volume, it indicates strong control by the main force. Conversely, if there is a drop on low volume, it suggests that panic selling has not occurred, and the bottom has not been reached, so further declines are likely.
3. Learn to observe the top structure of sectors. Usually, sector trends are formed by five waves: the first wave creates follow-up buying, the second wave washes out and adjusts, the third wave is the main rise, the fourth wave is complex divergence, and the fifth wave pulls up to sell. In this process, the third wave has the largest increase, followed by the first wave, and the fifth wave has the least. But market trends are ever-changing; many times, five waves do not even materialize, so one must not blindly memorize. When you find that the leading stocks in a sector are stagnating, if the subsequent rally does not maintain the previous momentum, it is likely that a peak has been reached.
4. Every time there is an acceleration at the peak of the major market, you will see certain sectors' altcoins surge, triggering a reversal in the major market. Just check if the leading stocks have stopped falling and started rising again, and the index will likely follow suit.
5. Specializing and focusing is the best way to start, especially for newcomers in the market. Study one strategy, master its techniques, and you will gain much more than trying to learn all at once. Greed leads to loss, and a lack of expertise can easily lead to market lessons. Do not switch strategies casually; take the time to learn, and gradually you will find your rhythm. After achieving stable profits, then learn more techniques to integrate.
In the turbulent world of cryptocurrency trading, hidden currents are always at play. There are always wise individuals whose insights shine like brilliant stars, enlightening us newcomers. These eight practical operational guidelines are like secret manuals that will help operators navigate through the bear market in the cryptocurrency space, overcoming obstacles and reaping rewards!
1. To recover losses, seek to break even; aspiring for profit is greed.
When trading cryptocurrencies, there will inevitably be several coins that suffer from being stuck. At such times, remember that you cannot expect to turn losses into profits instantly; seeking quick gains will only trap you deeper in the mire. You must diligently carry out operations to recover losses and protect your capital, allowing for a steady flow like a gentle stream.
2. When the calm water rises, beware of the big waves behind.
The cryptocurrency market may seem calm on the surface, but in reality, it is fraught with hidden dangers. Do not be deceived by the seemingly trivial small gains; always remain highly vigilant and be prepared for the dramatic fluctuations that may occur next.
3. After a big rise, there must be a correction; the K-line forms a triangle over several days.
When the coin price is soaring, do not let your guard down or become overly complacent. Because after this frenzy, a correction is inevitable. Operators need to watch the K-line trend, which is precisely the equilateral triangle formed over several days.
4. Buy on the dip, not on the rise; sell on the rise, not on the dip; moving against the market is the mark of a hero.
When buying coins, choose to act decisively during a downtrend; when selling, do so promptly during an uptrend. Moving against the trend is the key to victory, making you a hero in the cryptocurrency world.
5. Do not sell on spikes, do not buy on drops, and do not trade in sideways markets.
When the coin price surges, do not rush to take action; do not hastily buy the dip when it drops. When in a sideways market, it is even more important to control your hands firmly, observe calmly, and respond to changes with steadiness.
6. Look for support levels in an uptrend and resistance levels in a downtrend.
When the coin price is on an upward trend, closely monitor support levels to prevent sudden drops; when the price is declining, pay attention to resistance levels to decisively buy the dip at the right time.
7. Full position trading is a big taboo; acting obstinately is not advisable. One must know when to stop in the face of constant change; be able to enter and exit freely while observing the market.
Do not operate with a full position; putting all your eggs in one basket is a foolish strategy. The cryptocurrency market is unpredictable, and one must know when to take profits, moving in and out smoothly. Only by observing the changing situation calmly can one seize the best opportunities.
8. Trading cryptocurrency is about mindset; greed and fear are major harms. Be cautious about fluctuations, and maintain a calm and composed mindset to feel comfortable.
An excellent operator knows that mindset is crucial while trading in the cryptocurrency market. Greed and fear are our greatest enemies. Avoid chasing prices and selling in panic; always maintain a calm and composed mindset to navigate freely in the cryptocurrency world.
Finally, let us firmly remember these eight key operational guidelines and move steadily forward in the journey of cryptocurrency trading. The path of trading is filled with challenges and opportunities, and these eight practical operational techniques are like bright lamps illuminating our way forward. By strictly adhering to 'recover losses and seek to break even; aspiring for profit is greed,' we can remain calm in the face of difficulties, protect our capital with a steady strategy, and lay the foundation for future profits.
'When the calm water is high, beware of the big waves behind' reminds us to always stay alert, not to be deceived by surface calmness, and to keenly perceive the potential risks in the cryptocurrency market.
Every day is a setup for divine opportunities! Hit 555 below, unpredicted opportunities! Unpredicted opportunities!
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