Still rushing in with a full position? 10 iron rules for trading cryptocurrencies, each one a lifesaver!
1. If your capital is not very large, for example, under 200,000, catching a major upward trend once a year is enough; never be fully invested at all times.
2. A person can never earn wealth beyond their understanding; first, practice on a simulated account to develop your true mindset and courage. You can fail countless times on a simulated account, but in real trading, one failure might cost you everything, and you may even distance yourself from the market.
3. When encountering significant positive news, if you don't sell on the same day, remember to sell on the next day's opening high; cashing in on good news often turns into bad news.
4. When facing major holidays, reduce your position or even go to cash a week in advance; historically, markets tend to drop during holidays.
5. The medium to long-term strategy is to keep enough cash on hand, sell at highs, buy back at lows, and operate in a rolling manner.
6. For short-term trading, focus mainly on trading volume and patterns; engage with patterns that show significant fluctuations, but avoid the inactive ones.
7. A slow decline will lead to a slow rebound; a rapid decline will lead to a quick rebound.
8. Acknowledge if you made a wrong purchase, cut your losses in time, and preserving your principal is fundamental for survival in the market.
9. Always watch the 15-minute candlestick chart for short-term trades; use the KDJ indicator to find better buy and sell points.
10. There are countless techniques and methods for trading cryptocurrencies; mastering a few is sufficient, don't be greedy.
