Trading coins is not purely gambling, but rather a realization of personal cognition. In the cryptocurrency space, some can seize opportunities to achieve wealth leaps, while others suffer defeats in the market. If you have limited funds but desire to multiply your assets several times during a bull market, the following ten pieces of advice may become your lifeline, especially the eighth one, as many have stumbled on it.
Small funds need to "wait," not to "go all in."
With only 200,000 in capital, to achieve gains in the cryptocurrency space, capturing a 30% rise in 2 to 3 mainstream coins is enough. In a bull market, the biggest taboo is not missing out on the market but over-leveraging, ultimately getting trapped. True investment hunters dare to stay out of the market, waiting for the right opportunity to strike.
First seek "not to lose," then learn "to profit".
There’s a saying in the cryptocurrency space that hits hard: "I think this time is different." But the reality is that people can only earn money within their cognitive range. Before trading with real money, it might be wise to practice on a simulation account to hone your mindset. After all, once you incur losses in real trading, it may be difficult to recover, so steady and prudent action is the way to go.
Beware of "news traps" behind the good news.
On the day major good news is announced, if the coin price has already risen significantly, the high opening the next day may be an excellent selling point. The big players are experts at using news to exploit retail investors; don't be carried away by superficial good news.
In the days leading up to holidays, operations require caution.
According to data from the past 5 years, the probability of coin prices falling in the week before holidays exceeds 70%. During this time, either reduce your position appropriately or go into cash for the holidays; don’t go against the market trends.
In medium to long-term investments, keeping "bullets" on hand is key.
In medium to long-term investments, avoid putting all your chips in at once. Sell in batches when prices rise; buy in batches when prices fall. Ample cash flow is like a solid moat, allowing you to maintain control during market fluctuations.
For short-term trading, keep a close eye on the "momentum" indicator.
In short-term investing, when trading volume suddenly increases and the chart breaks through resistance, this may be a signal to enter. If the coin price is consolidating with low volume, it’s better to miss the opportunity than to act blindly and risk stepping on a landmine.
Opportunities are hidden in market crashes.
A slow decline in coin prices often means that no one is willing to take over, and further declines may continue. A sharp drop with increased volume could be the final dip, and a rebound might be just around the corner. Master the rhythm, and even a crash can become an opportunity for profit.
90% of people fail at this step.
"Just wait a bit, and I'll break even," is the biggest illusion in the cryptocurrency space. Be decisive with stop-losses and patient with profits. Remember, once your capital loses 50%, you need a 100% gain to break even. Are you really confident you can achieve that?
Short-term investment tool: 15-minute KDJ indicator.
For those who don’t have time to monitor the market, the 15-minute KDJ indicator is a good reference. Buy at a golden cross, sell at a death cross, and filter out false signals by combining with trading volume to improve the success rate of your trades.
Ultimate advice: less is more.
In the cryptocurrency space, there are thousands of technical indicators, but only a few can truly help you achieve stable profits. Instead of trying to learn too many, focus on mastering 3 to 5 effective methods of making money and strive for excellence.
Why can some people turn an initial capital of 200,000 into 1,000,000 in just three months? The key is not in complex techniques but in the secrets of position management. The harshest reality in the cryptocurrency world is not the fluctuating market but every investment opportunity you missed.