Core Principle: The 'Three Nos' of trading cryptocurrency
Do not chase prices to buy
Be cautious when market sentiment is high and prices are continuously rising, avoiding buying at high positions. Look for opportunities during pullbacks or declines, using market panic to build positions at lower prices.
Do not concentrate investments
Avoid putting all funds into a single cryptocurrency; diversify to spread risks. Even if one cryptocurrency performs poorly, the overall portfolio can still remain stable.
Avoid full position operations
Full positions limit flexibility; if the trend reverses, there is insufficient adjustment space. Retain cash reserves to handle unforeseen situations and seize low-price opportunities.
Six practical rules for short-term trading
High-level consolidation prepares for new highs; low-level consolidation guards against new lows.
A sideways movement at high levels often indicates a breakout upward, while a sideways movement at low levels may lead to further declines. It is recommended to patiently wait for trend confirmation before acting.
Do not enter the market recklessly during sideways movement
Avoid blind trading when the market has no clear direction; wait for trends to clarify to reduce ineffective losses.
Buy on bearish candles, sell on bullish candles
Counter-trend strategy: buy on dips during bearish candles and sell on profits during bullish candles, avoiding chasing prices.
The speed of decline determines the rebound
A strong rebound often follows a sharp decline, while a slow decline leads to a gentle recovery. Observe the downward momentum to accurately grasp buy and sell points.
Pyramid-style position building
Buy in batches, increasing purchases as prices drop, averaging costs and optimizing profit expectations.
Extreme rises and falls will lead to sideways movement
After consecutive rises and falls, the market needs to consolidate, and volatility will decrease. Frequent trading is not advisable during this time; wait for the next trend signal.
Core Insights
The key to successful cryptocurrency trading lies in calm analysis and strict execution of strategies. Investors must possess strong psychological resilience to withstand short-term market fluctuations. Additionally, the cryptocurrency market is highly uncertain, with risks everywhere. It is recommended to create a clear plan and manage funds according to personal financial conditions and risk preferences.
Risk Warning
Although the above techniques provide a systematic approach, they cannot guarantee profits. The cryptocurrency market is highly volatile; investment decisions should be made cautiously, and do not blindly follow trends.
Disclaimer: Grok is not a financial adviser; please consult one. Don't share information that can identify you.
