Newcomers who want to enhance their knowledge in the cryptocurrency space can follow the suggestions below:
Entry: Test the waters in the cryptocurrency market, prepare to proceed; enter steadily, reject reckless moves.
Sideways Movement: When low, sideways movement creates new lows, it's the right time to buy heavily; when high, if it rushes up, decisively sell without hesitation.
Volatility: Sell at highs, buy at drops; watch during sideways movement, reduce trading. Sideways means substituting drops, hold tightly to your shares, a rally could be just a second away; be alert for sharp drops during rapid climbs, always be ready to cash out; a slow decline is a good time to gradually average down.
Trading Timing: Don't chase highs, don't sell; don't jump into drops, don't buy; don't trade during sideways movement. Buy on down days, sell on up days; operate contrarily to stand out. Buy on significant morning drops, sell on significant morning rises; don't chase high during afternoon rallies, buy on next day after afternoon drops; don't panic sell on morning drops, rest when there's no movement; average down to recover investment, excessive greed is not advisable.
Risk Awareness: Calm lakes can stir high waves, and there may be great tides ahead; after a big rise, there must be a correction, with K-lines showing a triangle for many days. In an upward trend, look for support; in a downward trend, look for resistance. Trading with a full position is a big taboo; acting stubbornly will not work. When facing uncertainty, know when to stop, and seize opportunities to enter and exit. Trading is essentially a mindset; greed and fear are the greatest enemies. Be cautious when chasing prices and selling on dips; remain calm to stay at ease. Besides the mnemonics, I have also organized several practical trading methods that benefit both novices and experienced players alike. Fluctuation trading method: Most market conditions are in a fluctuating pattern; using high sell and low buy between boxes is the foundation for stable profits. Utilize BOLL indicators and box theory+, combine technical indicators and patterns to find resistance and support accurately+. Follow short-term trading principles, and avoid greed.
Breakout Breakthrough + Trading Method*: After a long period of consolidation, the market will choose a direction. Entering after the breakout can yield quick profits. However, you need to possess precise breakout unilateral trend trading skills*: After the market breaks the consolidation, a unilateral trend will form, trading in the direction of the trend is key to profit. Enter during retracements or rebounds, and reference indicators like K-lines, moving averages, BOLL, trend lines, etc. Familiar proficiency is essential for smooth operation. Resistance Support Trading Method*: When the market encounters key resistance or support levels, it often meets resistance or gains support. Entering at this time is a common strategy using trend lines, moving averages, Bollinger Bands, and parabolic indicators to accurately judge resistance and support levels.
Retracement Rebound Trading Method: After significant rises or falls, there will be a brief retracement or rebound; seize the opportunity to profit easily. Mainly rely on K-line patterns for judgment, and good market sense can help you accurately grasp highs and lows. Time-based trading method: Morning and afternoon sessions have small fluctuations, suitable for conservative investors. Although the profit-taking time is longer, it is easy to grasp the market trend; evening and early morning sessions have large fluctuations, suitable for aggressive investors. They can profit quickly, but the difficulty is high, requiring strict technical and judgment abilities.
Trading cryptocurrencies is not as simple as you think; it is not just about buying and selling to make countless profits. A qualified trader must track news hotspots, pay attention to international situations, study the fundamentals and technicals of virtual currencies, and have a big heart to endure the ups and downs. Those who manage to survive from nothing to something, or from something to nothing, are usually resilient, resistant to temptations, and forged through many trials.
Three Principles of Profit:
Principle 1: Strictly control your position at 50% when building your position; it can defend and attack. Never go all in; if the market crashes, not even a god can save you.
Principle 2: Once a coin rises 2-3 times, you must sell half first. After recouping your cost, use the profits to slowly play with the market makers. When we reach our target price, we can sell slowly. Keeping 10% of the base position avoids missing out on strong market makers' rapid pulls.
Principle 3: When the market is crazy and everyone is chasing prices, you must gradually sell off your holdings in phases. Don't be superstitious about the numbers in your account; only the money in your pocket is truly yours, the account balance is just a string of numbers.
Cryptocurrency Trading Secrets!
Secret 1: Small trading websites in the cryptocurrency space are not legitimate; do not invest large funds indiscriminately. If you want to play, go to reputable large platforms like Binance.
Secret 2: Recently, there are so many crowdfunding coins, please be discerning. Not all are unsuitable for investment, but many are traps. Be cautious, don't rely on luck, understand clearly; just because it's a crowdfunding opportunity doesn't mean you should invest. That would be like gambling.
Secret 3: Recently, the market is relatively sluggish, and the big trend is cooling down. Focus on observing for short-term operations, act when you see the right opportunity. For long-term investment, you can select high-quality coins ranked in the top 20 globally, and build your position in batches at low prices. (Remember, do not go all in, that is, do not buy too many coins at once or invest too much money. You can start with half positions, control your risk and capital well, and when prices rise or fall, you can average down or cut losses in time. This will be more beneficial for making money. If you fail to average down in time, you can minimize your losses. Trading is all about making money, so be prepared to avoid unnecessary losses.)
Finally: A crucial point, do not follow the crowd.
Ordinary people have a chance to turn their fortunes through trading, but there are also high risks involved. Successful trading requires deep market knowledge, technical analysis skills, and capital management techniques.
Step 1: Choose coins from the top gainers list.
First, go check the top gainers list and select those performing well to add to your watchlist. However, if a coin has dropped for more than three consecutive days, try to avoid it. This is because the capital has likely fled, and such coins do not have much opportunity.
Step 2: Observe the MACD golden cross +
Then, open the K-line chart, focus on the monthly MACD golden cross. Such coins are relatively stable and align with the upward trend.
Step 3: Look at the daily chart and the 60-day moving average +
Then check the daily K-line chart, particularly the 60-day moving average. When the coin price retraces to near the 60-day moving average and shows a volume K-line, it is the best time to buy heavily.
Step 4: Holding and Selling. Once you buy, remember to use the 60-day moving average as a benchmark. If the price stays above the line, continue holding; if it falls below, sell.
Three small details to pay attention to:
When the price rises over 30%, sell one-third of your position.
When the price rises over 50%, sell another third of your position.
The most crucial point: If the coin price falls below the 60-day moving average the next day, sell everything without hesitation. Don't think the price will rebound; the market is not that simple.
Although the probability of this situation is not high, you must have a risk awareness. In the cryptocurrency market, preserving your capital is the most important. If you sell and it meets the buying conditions again, wait for the opportunity to re-enter.
Most importantly, stick to your methods. Especially, "sell everything once it falls below the 60-day moving average"; not many can do this, but it is key to your profitability.
Remember, we come to the cryptocurrency market to make money; we cannot play casually. We must treat it seriously to truly make money!
I have navigated the market for many years, well-versed in its opportunities and traps. If your investment is not going well and you feel frustrated about losses, leave a comment with 999! I will share my insights.
