Want to make money in the crypto world? First, avoid these three deadly pitfalls!
❶ Don't chase rising prices and panic sell! Following the trend when prices soar = giving away your profit to the big players; when others are greedy, retreating is the smart move.
❷ Don't put all your funds into a single coin! Going all-in is gambling; diversifying your investments and managing your positions can withstand black swan events.
❸ Don't go all-in! Keep 30% cash for opportunities; being fully invested means handing control over to the market, and when your mindset collapses, your actions will change.
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Remember these six short-term strategies:
· In a high position, look for new highs; in a low position, guard against further declines; if the direction is unclear, don't act.
· Buy in batches on bearish days, sell in batches on bullish days; practice counter-trend trading instead of chasing prices.
· A sharp drop is an opportunity (rebounds quickly), but exit quickly in a steady decline (it’s a bottomless pit).
· Pyramid your investments: add 10% when there's a 10% drop; the more it falls, the more you buy to lower your cost.
· During consolidation, don't be greedy: take profits when prices rise significantly, and accumulate in batches when prices fall; follow the rhythm decisively when the trend changes.
The crypto world is not short of opportunities; what's lacking is the awareness to avoid traps! Which pitfalls have you stepped into?👇