If you only focus on immediate profits, it's easy to lose your reason and fall into traps.
Only by pursuing steady growth can you find a balance between risk and return.
The following 8 trading rules, if you understand them deeply, will definitely help you avoid detours:
1. Averaging down is only to preserve capital; hoping for huge profits is greed. When trapped, the purpose of averaging down is to reduce losses, not to seek profits. Avoid blindly chasing rebounds.
2. Behind a calm market, there often hides great volatility. Don't be confused by the temporarily stable market; changes can occur at any time.
3. After a big rise, there must be a pullback; be cautious of K-line forming triangles for a long time. After a significant rise, a pullback is inevitable; this is a hard rule. Observe market patterns to avoid getting trapped at high levels.
4. Buy on bearish candles, sell on bullish candles; counter-market operation is the way to go. Buy when everyone is panicking and sell when everyone is crazy; this is how experts operate.
5. Don't sell when the market is high, don't buy when it plunges, and never act during sideways movement. Don't rush to sell when the market is at a high point; decisively enter when it breaks support, and do not act lightly during sideways movement.
6. Watch resistance levels when rising and support levels when falling. Pay attention to resistance levels during an uptrend and note support levels during a downtrend to stay informed.
7. Full position trading is a big taboo; acting stubbornly is unwise. The market is unpredictable; always maintain flexibility. Position management is crucial, and being able to enter and exit freely will allow you to navigate smoothly.
8. Trading is about mindset; greed and fear are the biggest enemies. Chasing rises and killing during drops will only lead to greater losses. Maintaining a stable mindset is essential to remain undefeated in the market.
Remember these principles, and proceed steadily to go further in the crypto circle. I hope everyone can sail smoothly in the crypto market and have abundant wealth!
5 Laws of Expert Crypto Trading
A lot of valuable information, I want to share with everyone, hoping it can help newcomers avoid pitfalls.
1. Fast rise and slow fall -- the operator is accumulating. If you see the market rising rapidly but falling slowly, this usually means the operator is quietly accumulating, preparing for the next round of lifting. Don't be easily scared by small fluctuations; this may be a warm-up before a big rise.
2. Rapid decline and slow rise -- the operator is cashing out. When the market drops sharply and the rise is weak, it can generally be confirmed that the operator is cashing out. At this time, do not hold any fluke mentality; the market may soon turn to a downward trend.
3. Don't rush to sell when there is high volume at the top, but run quickly when there is low volume. If the price reaches a high point and the trading volume increases, don’t rush to sell; there may still be further increases. However, if the top volume is not significant, hurry to leave as this indicates that the upward momentum is insufficient and danger is approaching.
4. Be cautious with volume at the bottom; continuous volume is a signal to enter. When you see volume at the bottom, don’t rush to buy; it may just be a continuation of the downward process. Wait for continuous volume to confirm that funds are continuously entering before considering an entry.
5. Trading is about emotions, and trading volume reflects consensus. The market is largely driven by emotions, and trading volume is a reflection of market sentiment.
6. Pay more attention to trading volume to better grasp market trends. Following consensus allows you to be less affected by emotional fluctuations. While the market is full of uncertainties, it also hides opportunities.
To walk steadily in this market, you not only need to understand technology but also understand emotions. Stay calm and rational, and do not be confused by short-term fluctuations.
🤫 Follow Brother Sheng, a seasoned practical player in the crypto circle for 10 years, to unlock more practical skills and hidden practical content~
