Insights from my days in the crypto world! Dedicated to friends who have just entered the market

1. Don't get attached to hot coins; when altcoins have made enough profit, it's time to swap. Trying to enjoy the ride from start to finish is bound to end in disappointment. The reasoning is simple: altcoins cannot keep rising indefinitely. Once the hype has passed, it's time to sell; otherwise, if they drop back to their original price, it will feel like a wasted effort. For example, the cases of FIL and LUNA from previous years.

2. When prices consolidate at a high level before surging again, be ready to sell; when prices consolidate at a low level and make new lows, a good opportunity is likely to appear. When the price creates new highs after consolidating at a high level, be wary of potential traps set by the main players; do not hesitate to reduce your position or exit. Conversely, if the price makes new lows after consolidating at a low level and quickly rebounds, it is likely a final shakeout from the main players, and you should stay resolute in your decisions.

3. When the market environment is poor, prices may rise against the trend. A small increase against the trend could lead to a larger rise. Conversely, when the market environment is favorable, prices that are consolidating against the trend may experience small declines, which could lead to significant falls.

4. Only increase your position when making profits, don’t average down on losses. This might challenge the understanding of many seasoned traders. Our positions should be increased when prices break previous highs, not when they are continuously falling. Averaging down during a decline will only lead to larger losses, ultimately immobilizing you. It is essential to cut losses and let profits run.

5. As long as you recognize the bottom price, generally, the price will rise in a pattern of two steps forward and one step back. At this point, do not doubt; usually, a big surprise follows. Particularly during a trend rise, prices tend to rise while also undergoing consolidation, so don’t get off the ride too easily.

6. Top traders first analyze sectors, second traders look at individual coins, third-tier traders focus on indicators, and the lowest-tier traders just gamble. This means that when we decide to buy a certain coin, we should first examine its sector. Only by focusing on hot sectors will we have higher popularity and win rates. Next, we should look at the tokens themselves. Those who only focus on indicators are beginners, while those who look at everything are gamblers.

7. Indicators change with volume and price, so volume and price are the roots of indicators. If you rely on indicators without considering volume and price, you will end up puzzled in trading. Indicators are calculated based on price and trading volume, so true technical analysis requires looking at both volume and price. Price increases require substantial capital to drive them.

8. In an upward trend, look for support; in a downward trend, look for resistance. When the price is in an upward trend, operating based on support lines yields a high success rate, and there are opportunities to buy on dips. #币圈