1. Stand tall and sell urgently; after a period of slight rise, if the coin price suddenly shows a large volume with a long upper shadow on the K line, this is a top signal. If the bottom volume expands, stand firm, decisively take the short opportunity.
2. The two brothers shave their heads; the big cake cannot be left.
The coin price appears at a high level with two sets of flat tops, both 'brother' and 'younger brother' being equally high; this pattern is a short-selling signal, and there is often a drop later.
3. A large volume at a high position; the coin price is near the peak.
When the coin price suddenly shows large trading volume at a high level and a sharp K column appears, a price drop is just a matter of time, and most will drop quickly, presenting a good shorting opportunity.
4. Double peaks touch the sky, a drop is imminent.
After the coin price rises at a high level, if it forms two peaks with little difference in height, and the corresponding volume below increases, most funds have fled, which is considered a selling signal, presenting a good shorting opportunity.
The highest realm of trading cryptocurrencies:
1. Trade cryptocurrencies with your own funds: Never use loans or overdraft funds for investment.
2. Use idle funds cautiously: Only invest idle funds that do not affect daily life.
3. Long-term holding: Adhere to long-term investment; do not engage in short-term trading.
4. Wait for the right opportunity: It is better to stay out of the market and wait for the right market opportunity than to enter blindly.
5. Make rational decisions: Do not overly rely on technical indicators but base decisions on comprehensive market analysis and rational judgment.
6. Avoid speculative mountain climbing coins: Do not invest in low-quality or worthless niche cryptocurrencies.
7. Maintain risk control: Even for high-quality coins, do not blindly reduce positions due to market fluctuations. 8. Adjust flexibly: After a bull market ends, choose to remain in cash or reduce positions to avoid market risks.
9. Firm goals: After determining the investment targets, a heavy position strategy will be adopted when deciding to enter the market.
The key to trading cryptocurrencies lies in timing: when to buy and when to sell.
The secret of trading cryptocurrencies can be summarized in two sentences: minimize losses, let profits run.
This statement means that if you find the trend of the token is not right, immediately cut losses and minimize the losses as much as possible. Once there is a profit, you must maintain patience and let small profits turn into large profits.
The first priority in selecting buying points: Choose stop-loss points based on three criteria: value analysis, technical analysis, and market cycles.
Some people only look at value analysis when buying tokens, studying the intrinsic value of the project itself, while others only consider technical analysis, believing that the market's view of the token is fully reflected in the stock price and its trading volume.
Most traders belong to the second category; the price of a token reflects the future prospects of the company.
A more appropriate method is to use value analysis to select tokens.
The operation after finding the token mainly relies on technical analysis.
Then, based on the principle of losing small amounts when losing and making large amounts when making profits, cut losses in a timely manner.
Imagine you are a large investor; how would you manipulate public psychology?
The tricks of large investors are actually quite simple.
When they want to buy in, they either do it quietly or try to trigger panic selling among the public. In the former case, you will notice an increase in trading volume, but it is not obvious, and the price gradually rises step by step.
The latter involves creating some universally recognized good selling points. When large investors want to sell, they either buy in first, causing a price surge. The process of finding the critical point of coin price fluctuations is the learning process of trading cryptocurrencies, which requires continuously discovering the critical indicators that suit one's personality and risk tolerance.
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When to sell can be divided into two parts:
The first is how to choose a profit-taking point.
The second is how to choose a suitable selling point after making a profit.
It is very difficult to catch the beginning and end of a token; traders should learn how to capture 70% of the middle volatility. Do not try to find the highest point of a token; you will never know how high it will rise. Deciding when to sell is more difficult than deciding when to buy; when losing, one hopes to break even, and when making a profit, one wants to earn more, leading to a constant internal struggle.
For beginners who are just learning to trade cryptocurrencies, having a mentality of not selling without making a profit is extremely detrimental. With this mindset, a fate of failure is almost predetermined.
Profound insight: The survival rule in the market is not to pursue short-term profits but to build a stable profit system. The compound effect is like a snowball; the longer it rolls, the greater its power. Only by establishing scientific position management and risk control mechanisms can assets continue to appreciate amid market fluctuations.
Sailing in the sea of books requires diligence, and the journey of learning relies on persistence; you will surely return with a full load in your journey of knowledge. Helping others is like helping myself, I am Muqing, willing to walk with you, here, not only teaching people to fish but also giving them fish! Daily updates on the essence of cryptocurrency trading, do not miss out.
There are no victories in the world that come easily, nor are there efforts that are in vain! Although the investment path is lonely, it is full of meaning; I hope to encourage everyone, hand in hand. If you want to gain more free and practical investment information, please follow Crypto Muqing.
