1. Capital Management is Vital: In investing, avoid putting all your eggs in one basket, and when capital is limited, one must understand the importance of waiting. Grasping just one major market trend each year is sufficient; always reserve more than 30% cash reserves. This allows for flexible replenishment to lower average costs during market downturns and prompt stop-losses during sudden risks, avoiding a situation of 'running out of ammunition'.
2. Cognition Determines Profit Boundaries: The blockchain project landscape is mixed; for tokens that one cannot even understand the white paper for, even if one is skilled in simulated trading, real trading may lead to chaos due to emotional fluctuations. It is recommended to systematically learn basic knowledge such as KYC (Know Your Customer) and smart contracts, and to refine one's mindset through at least 3 months of simulated trading before cautiously entering the market.
3. Be Decisive in Realizing Profits: The market often plays out stories of 'selling on good news'. When major positive news drives up token prices, if one does not sell in time on that day, and a high opening occurs the next day, one must decisively liquidate. Remember, the capital market is never short of regret remedies, but lacks the courage for timely profit-taking.
4. Holiday Risk Avoidance Rule: Every major holiday, global market activity drops sharply, and liquidity exhaustion can easily lead to dramatic price fluctuations. It is recommended to gradually reduce positions 5-7 days before the holiday and transfer funds into stablecoins or withdraw from the market. After all, enjoying a worry-free vacation is more important than being anxious during the holiday.
5. Medium to Long-Term Gold Strategy: Adhere to the principle of 'pyramidal position building'; for every 10%-15% drop in the token price, buy in batches according to a 1:2:3 ratio; during price increases, sell in an inverted pyramid manner, selling 60% after reaching the expected increase and setting a trailing stop for the remaining portion. This strategy locks in profits while avoiding missed opportunities.
6. Short-Term Trading Rules: Focus on mainstream tokens with daily transaction volumes exceeding $100 million and turnover rates higher than 15%, avoiding niche tokens outside the top 50 by market capitalization. Popular tokens mean higher liquidity and lower slippage; following institutional capital flows can reduce the risk of being 'cut by the market'.
7. Understand Market Sentiment Signals: Tokens that continuously decline often hide reversal opportunities, which can be judged by the degree of shrinking trading volume to identify bottoming signals; however, for tokens that suddenly crash, even if a rebound occurs after excessive decline, it is advisable to take profits in the 20%-30% gain range and not to fantasize about a V-shaped reversal.
8. Setting Stop Losses is More Important than Predictions: Set a strict stop-loss line (recommended not to exceed 15%); once triggered, execute immediately. Historical data shows that investors who stubbornly hold onto losses average losses more than three times greater than those who stop loss in time. Preserving capital allows for opportunities to recover in the next market cycle.
9. 15-Minute K-Line Trading Guide: Centered on the KDJ indicator, sell when the J value breaks 100 and enters the overbought zone, combined with a shortening of MACD red bars and the occurrence of a top divergence in the RSI; buy when the J value drops below 0 and enters the oversold zone, while the MACD green bars narrow and the RSI forms a bottom divergence. Multi-indicator resonance can significantly improve trading success rates.
10. Technical Specialization Over Greed: Rather than dabbling in learning dozens of indicators, it is better to delve deep into KDJ, MACD, and Bollinger Bands. By backtesting nearly 3 years of historical data, find the parameter combination that suits oneself best and form a stable trading system, which is more reliable than blindly following trends.
Ultimately, the core of trading cryptocurrencies lies in the word 'restraint': restrain the impulse to chase prices or panic sell, restrain the desire for frequent trading, and restrain the fantasy of getting rich overnight. Only by establishing a scientific trading system and strictly adhering to capital management discipline can one steadily progress in the rapidly changing crypto market.
