After several years of navigating the cryptocurrency market, experiencing countless ups and downs, I have summarized my insights into eight maxims.
1. Skillfully Use Morning Trends: In the morning, the market sentiment is at its purest. If prices plummet sharply, don't panic; it might be a good opportunity to buy at a low price. If the price rises sharply in the morning, don't be greedy; take the opportunity to sell for profit and secure your gains.
2. Master Afternoon Strategies: If there's a sudden surge in the afternoon, don't get carried away and chase the trend; it's mostly a false signal, and buying at a high can lead to losses. Conversely, if there's a significant drop in the afternoon, remain calm and observe for a while, often finding a good entry point the next day can yield low-priced assets.
3. Maintain Composure During Declines: If you wake up to see prices have plummeted, don't rush to cut losses. The market changes rapidly, and morning volatility can often be misleading. If the market is stagnant and shows no sign of movement, don't be anxious; it's better to take a break, conserve your energy, and wait for opportunities.
4. Strictly Adhere to Buying and Selling Principles: If the cryptocurrency you hold hasn't reached your expected high, don't sell easily; making a small profit is still a loss. If it hasn't dropped to your psychological price, hold back and don't rush to buy, to avoid catching a falling knife. During sideways phases, where the trend is chaotic and direction unclear, trading is undoubtedly like a blind person feeling an elephant; it's better to watch from the sidelines.
5. Operate with Candlestick Patterns: Buy on bearish candles and sell on bullish candles; this is a classic strategy. A bearish candle indicates a price correction and cheaper assets, making it a good time to enter; a bullish candle signals the formation of a short-term uptrend, so it's wise to sell at a high and secure profits.
6. Think Contrarily to Breakthrough: To stand out in the cryptocurrency market, sometimes you need to go against the crowd. When everyone is enthusiastically chasing, maintain a cool head; when panic-selling occurs, be more decisive and brave enough to act contrary, as this can lead to unique opportunities for wealth outside of mainstream trends.
7. Endure the Torture of Consolidation: When prices are consolidating at high or low levels for an extended time, it can be frustrating. Don’t let anxiety drive you to make rash decisions; be patient and wait until the trend becomes clear—whether it’s an upward breakthrough or a downward test—before you make your move.
8. Seize the Last Surge: After a long period of consolidation at high levels, if there’s a renewed upward movement, don’t hesitate; this is likely the final frenzy. Sell in a timely manner to keep your profits in hand, or else you might miss out, and the cooked duck could fly away.