Today, I share the 'Six Great Classics' of cryptocurrency trading that I have repeatedly summarized and practiced over the years. If you decide to trade cryptocurrencies for a living, I recommend you collect and remember these six classics.
Point One: Understand how to stop losses and take profits.
We trade cryptocurrencies for trading and speculation, not to hold indefinitely! When you make money, you think about making more, and when you lose, you are reluctant to sell. This mindset is definitely not advisable. When the trend of your position goes wrong, you need to decisively sell.
Point Two: Don't always think about buying low and selling high.
Because the market will only have lower and higher points. Ordinary people like us cannot achieve this mechanism, so we should not pursue so-called highs and lows. What we really need to do is to buy and sell in the bottom and top areas.
Point Three: Volume and price must match perfectly.
For those positions that rise without volume or reach new highs without volume, we must be vigilant. This could likely be a signal of exhaustion due to the main force being unable to unload. Do not chase; it is better to miss out than to make a mistake.
Point Four: Reactions must be quick.
When new information arises, we must immediately identify the beneficial sectors and companies. If you can't keep up with the first tier, then we should act promptly; the second tier will also yield considerable gains.
Point Five: Learn to take breaks.
As the saying goes, it takes three months to see the bottom and three days to see the top. This means that the main wave of the known price rise cycle only lasts a short time. Therefore, we must learn to seize this main wave, and usually rest during other times.
Point Six: The greatest benefit of the market is a crash, because after a crash...
After a downturn, there will often be many greater opportunities. When others are greedy, you must learn to be fearful; when others are fearful, we should be greedy. So when the market experiences a crash, don't be afraid. At this time, we should choose quality positions and build positions in a timely manner.
These six points sound relatively simple, but very few people can truly achieve them. Why? If you cannot overcome the weaknesses of human nature, you will never earn your first five million in your life.
