Common Mistakes of Retail Investors, Contrarian Operations

He pointed out that the common mistake of retail investors worldwide is: holding on to losses and not letting go, while being eager to sell at the slightest profit. The correct approach is precisely the contrarian strategy—holding on to profits and letting them run; decisively cutting losses when in the red to control risk. His principles for taking profits and cutting losses are clear and straightforward.

Trend is King, Go with the Trend

He emphasized that once a trend is established, there is no need for excessive analysis; just follow the money. A simple way to judge the trend is to observe moving averages: bullish trends go up, bearish trends continue down. Short-term traders focus on daily moving averages and follow up on breakthrough volumes; medium to long-term traders pay attention to weekly moving averages, entering when there is a breakout with volume and decisively exiting when it drops below. Going with the trend and not against it is the wise choice in cryptocurrency trading.

Control Losses, Master the Techniques

He reminded us that having the courage to admit mistakes and timely controlling losses is fundamental to surviving in the market. This importance far exceeds temporary profits. Regardless of the method used, as long as one is proficient in one, they can establish themselves in the crypto space. When trading short-term, he suggests not overly relying on short-cycle candlestick charts but should combine indicators like KDJ and OBV to find entry and exit points for the day and determine the intentions of the main force. The difference between a washout and a sell-off lies in the decrease and increase in volume; a strong upward-moving cryptocurrency, even when facing risk warnings, often indicates a washout with reduced volume, and new highs can be anticipated. #策略交昜