If you want to make money in the cryptocurrency market, you must remember these six iron rules:
1. You need to divide your money into five parts, and only invest one-fifth each time. If you lose 10%, walk away immediately. This way, even if you lose five times in a row, you will only lose one-tenth of your total amount, which won’t be too damaging.
2. You must follow the market, do not go against the trend. When the market is falling, a rebound might be a trap; when the market is rising, a pullback might be a good opportunity to make money.
3. Never chase coins that have already skyrocketed; they are too high and could fall at any moment.
4. You must learn to watch the MACD indicator, as it can help you find the best entry point. When the DIF and DEA lines cross below the 0-axis and then cross above it, that’s a good buying opportunity; if they cross above the 0-axis and then start to go down, that’s a signal to sell.
5. Remember, never add to your position when you are losing money; add to your position when you are making money. You need to observe the relationship between volume and price; if the coin price breaks out with increased volume when it’s low, it might go up; if it doesn’t go up when it’s high with increased volume, run away quickly. When selecting coins, choose those with good trends and value.
6. Review your trades weekly to see what you did well and what you did poorly, and adjust your strategy in a timely manner.
These six iron rules are lessons I learned through painful experiences, if you follow them, you will definitely thrive in the cryptocurrency market!