Super Practical Cryptocurrency Trading Strategies: Simple Methods to Earn Big Profits
There is a seemingly simple method for trading cryptocurrencies that can yield substantial profits. With patience to learn and practice, you can share in the profits of the crypto world. Now, let's look at the specifics of this method.
Remember the Three Major Trading Taboo
1. Refuse to Chase Prices: Never buy when the price is rising. Instead, do the opposite: buy boldly when the market is in panic and prices are falling, and cultivate this into a trading habit, practicing the philosophy of 'When others are fearful, I am greedy; when others are greedy, I am fearful.'
2. Avoid Pressing Orders: Pressing orders can make trading passive, causing you to miss the best opportunities. This should be avoided.
3. Eliminate Full Positions: Full positions can make investors extremely passive during market fluctuations. There are many opportunities in the crypto world, and being fully invested can significantly increase opportunity costs, so it is essential to control positions reasonably.
Master the Six Major Short-term Cryptocurrency Trading Principles
1. Grasp the Direction after Consolidation: Prices are likely to reach new highs after consolidating at high levels; after consolidating at low levels, they often reach new lows. Therefore, wait for the consolidation to end and the direction to become clear before taking action.
2. Do Not Trade During Sideways Movements: Many investors incur losses by frequently trading during sideways periods. It is best to stay put when prices are stagnant.
3. Buy and Sell Based on K-Line Trends: Buy when the daily line closes with a bearish candle and sell when it closes with a bullish candle to increase the probability of profit.
4. Pay Attention to the Rhythm of Declines and Rebounds: When prices are declining at a slower pace, rebounds will also be relatively slow; when declines accelerate, rebounds will be stronger. Utilizing this rule can help better grasp buying and selling opportunities.
5. Use a Pyramid Building Strategy: The pyramid building method involves gradually increasing buying positions as prices decline. This classic strategy of value investing helps reduce costs and increase returns.
6. Respond to Changes after Sideways Movements: After a cryptocurrency has been rising or falling continuously, it usually enters a sideways state. At this time, do not sell all at high positions, nor buy all at low positions. After consolidation ends, if prices change downwards from high levels, liquidate in a timely manner; if they change upwards, follow up appropriately.
As long as you strictly adhere to these trading principles and flexibly apply them according to market conditions, even if the methods seem simple, you can achieve stable profits in the complex and ever-changing crypto market and gradually accumulate wealth.