Don’t be greedy when trading cryptocurrencies, remember these five points, and navigating the crypto world will be easy
1. Averaging down is only for stopping losses
Averaging down is meant to reduce losses, not to make big profits. When stuck, don't fantasize about recovering losses through rebounds; that can lead to trouble. Averaging down is about reducing losses; don’t lose your mind just because you’re temporarily stuck.
2. Beware of calm markets
Calm markets often hide big fluctuations; don’t be deceived by temporary stability. The market is volatile; after a big rise, there will certainly be a correction. Be cautious when the K-line shows a triangular formation, and be wary of getting stuck at high positions.
3. Seize buying and selling opportunities
Buy on red candles, sell on green candles. Be brave to buy when others panic, and decisive to sell when others are crazy. Don’t sell when the price spikes, and don’t buy when it crashes; avoid trading during sideways movements. Pay attention to resistance levels during upward trends and support levels during downward trends.
4. Avoid full positions, stay flexible
Having a full position is a big taboo; the cryptocurrency market is unpredictable. Position management is key; maintaining flexibility allows for better handling of situations.
5. Maintain a good mindset
Greed and fear are major enemies; chasing prices and panic selling will only lead to greater losses. Stay calm to establish yourself in the market.