A super stable method for trading cryptocurrencies that guarantees you profits without losses. There’s a particularly simple yet steady method that can help you grasp all the profits, but you need to take your time to figure it out. When trading cryptocurrencies, there are three things you must never do.
The first thing is to avoid buying when prices are rising. You need to learn to buy boldly when others are scared to death, and to take it easy when others are scrambling. Get into the habit of buying during price drops.
The second thing is to avoid putting all your eggs in one basket.
The third thing is to avoid operating with a full position; if you do, you become passive. There are plenty of opportunities in the market, and a full position increases your opportunity cost.
Now let’s talk about a few tricks for short-term cryptocurrency trading:
The first one is to avoid rushing to buy when prices are high; they might still go up a bit more. Don’t rush to sell when prices are low; they might still drop a bit more. Wait until the direction is clear before acting.
The second one is to avoid trading during sideways movements; failing to do this will lead many to lose money in trading cryptocurrencies.
The third one is to look at the candlestick chart. When there’s a bearish candle, try buying; when there’s a bullish candle, consider selling.
The fourth one is that if the price drops slowly, the rebound will also be slow; if it drops quickly, the rebound will be vigorous.
The fifth one is to build positions according to the pyramid principle; this is an old rule of value investing.
The sixth one is that if a cryptocurrency rises sharply or falls dramatically, it will definitely move sideways for a while afterward. At this point, don’t sell everything at a high, and don’t buy everything at a low. After the sideways movement, there will be a trend change; if it starts to drop from a high point, you need to quickly liquidate your positions.