Newcomers should learn these 10 easy profit rules. In the cryptocurrency market, filled with opportunities and challenges, newcomers often desire to find quick ways to accumulate wealth. Today, I present 10 validated profit rules. Master this foolproof trading formula to help your assets grow exponentially. It is highly recommended to save and repeatedly study these rules.
Bottom Buying Rule: When a strong cryptocurrency falls for nine consecutive days at a high point, this is likely an excellent bottom-buying signal. At this time, don’t hesitate, act decisively. Such continuous declines often create real investment opportunities, akin to a golden pit. In the cryptocurrency market, significant price corrections can sometimes present great opportunities to acquire low-priced assets, seizing such chances lays the foundation for future wealth growth.
Take-Profit Rule: If the cryptocurrency you hold has risen for two consecutive days, you must consider reducing your position to lock in profits. The cryptocurrency market is unpredictable; there is no myth of perpetual rise without falls. Timely securing the profits already gained is the most practical approach. Avoid missing the best take-profit opportunity due to greed, which can lead to profit reversal.
High Surge Signal: When a cryptocurrency shows a 7% increase, this is just the beginning of the trend. Usually, the next day the cryptocurrency will continue to rise due to inertia. Therefore, investors should closely monitor the market and not rush to exit. Patience is needed to wait for further price increases to achieve greater profits.
Trend Secret: For cryptocurrencies with long-term upward potential, the end of a pullback is the best entry point. In cryptocurrency investing, one must refuse to blindly chase rises and panic sell. Patiently waiting for the market to pull back properly and entering in accordance with the trend is akin to waiting for the wind to come, so that one can easily ride the favorable winds of wealth growth.
Market Change Warning: If a cryptocurrency price remains flat for three days, further observation is needed. If the stagnation continues for six days without a breakout, investors should decisively choose to switch positions, and not cling to the current position. Prolonged stagnation without a breakout often indicates that the market may soon change, and timely adjustments in investment direction can effectively mitigate risks.
Stop-Loss Iron Rule: If after buying a cryptocurrency, you do not recover your cost the next day, you should immediately liquidate your position. In cryptocurrency investing, stop-loss must be decisive. Once an investment direction is found to be wrong, quickly cut losses. Hesitation often leads to greater losses; strictly executing the stop-loss strategy is essential to preserve strength in the market.
Rule of Continuous Rise: When a cryptocurrency rises for three consecutive days, it often suggests the possibility of a five-day upward trend. On the fifth day, investors should take profit. In the cryptocurrency market, knowing when to sell is the key to successful investing. Accurately grasping the timing for selling can maximize profits.
Volume and Price Bible: When a cryptocurrency experiences a breakout with increased volume at a low point, this is a clear entry signal. The increase in volume indicates active market participation, and prices are expected to continue to rise. Conversely, if there is increased volume at a high point with stagnation, it is a strong warning to exit. At this time, investors should decisively leave the market to avoid falling into a price decline.
Moving Average Strategy: In technical analysis, the 3-day line can be used to judge short-term trends, the 30-day line assists in observing mid-term trends, the 80-day line is often related to main upward waves, and the 120-day line can serve as a reference for long-term investments. Investors should choose cryptocurrencies where the moving average is trending upwards for investment, following the trend can achieve steady profits while avoiding fatigue and risks from frequent operations.
Comeback Mindset: Even with a small amount of capital, significant returns can be achieved in the cryptocurrency market. The key lies in rejecting the interference of FOMO (Fear Of Missing Out) emotions and strictly adhering to trading discipline. Consistently learning and practicing every day allows for a 1% improvement in investment knowledge and skills, creating miracles of wealth growth through the power of compound interest.
If you lack technical and news support, and only look at the top losers and hottest stocks to make trades! Then you won’t be able to follow me for long, just take profit when you see it.
