Hello everyone, I am a post-90s, you can call me Dao Shen. I accidentally came across the cryptocurrency trading industry in 2015. At first, I lost hundreds of thousands like gambling. But later, I started to study seriously, searching for information everywhere, learning relevant knowledge, and continuously improving my skills. After a few years of ups and downs, I finally迎来了转机 in 2024. I started my comeback journey. In just over two years, I turned 100,000 into an eight-figure sum!
Core principle - Three don'ts of cryptocurrency trading:
Avoid buying during price increases: When market sentiment is high, prices are often inflated. Conversely, buy during market corrections or declines to take advantage of fear in the market to acquire assets at lower prices.
Diversify risks: Do not put all your funds into one type of cryptocurrency. Diversified investment can spread risks, so even if a particular cryptocurrency performs poorly, it will not deal a fatal blow to the overall investment.
Control position size: Full position trading limits your flexibility. Keeping a certain cash reserve allows for quick strategy adjustments when market movements do not align with expectations.
Six rules for short-term cryptocurrency trading:
After a consolidation at a high level, there is often a new high; after a consolidation at a low level, there is often a new low: high-level consolidation usually indicates a new round of rising, while low-level consolidation may lead to further declines. Wait for the trend to clarify before taking action.
Do not trade during sideways movement: When the market lacks a clear direction, the best approach is to watch the changes until the trend is clear.
Buy on bearish days, sell on bullish days: A contrarian thinking strategy, buying when the market is generally bearish and selling when the market is generally optimistic to reduce the risk of chasing highs and cutting losses.
Assess rebound strength based on the speed of decline: Rapid declines are often accompanied by quick rebounds, while slow declines may lead to more moderate recoveries.
Pyramid building: Gradually increase your position size, especially increasing purchases during price declines to lower costs and lay the foundation for future profits.
After sustained rises and falls, there must be sideways movement: Long-term price movements will experience a consolidation period, during which price fluctuations are smaller. It is not advisable to rush in and out; wait for the next trend signal.
