The road in the cryptocurrency world is not smooth. For newcomers entering the crypto space and getting involved in contracts, I have the following suggestions:
1. During the day, emotions can be unsettled, making it difficult to see the situation clearly, so it's best to trade at night. This can help avoid emotional interference and allow for clearer market analysis.
2. After making a profit, do not chase trades; understand the importance of taking profits. Greed is the arch-enemy of trading cryptocurrencies; once caught in it, it's easy to turn profits into losses.
3. Trading decisions should be based on market environment analysis, not on gut feelings. Only through rational analysis can correct decisions be made.
4. When you have time to monitor the market, do not set stop-loss and take-profit levels lightly, as minor fluctuations can trigger stop-loss prices and lead to forced liquidation. However, when you cannot keep an eye on the market, it is essential to set these levels to prevent significant losses from sudden spikes.
5. The goal of trading cryptocurrencies is to withdraw funds; after making a profit, you should regularly transfer or withdraw some capital. This ensures that profits are secured and prevents losses due to greed.
6. When day trading, you can focus on the one-hour candlestick chart, deciding whether to go long or short based on the second-tier rise and fall trends. When encountering sideways movement, you can analyze using the four-hour and daily candlestick charts. At the same time, be sure to set stop-loss and take-profit levels.