1. A sharp decline is a touchstone for testing quality coins. If the market crashes and your coin only dips slightly, it's clear that the major players are supporting it and resisting a drop. Therefore, such coins can be safely held, and rewards are certain.
2. If beginners are unsure how to buy and sell, the simplest and most direct method is to use the 5-day moving average for short-term trading: hold as long as it's above the 5-day line, sell if it breaks below. For medium-term trading, use the 20-day moving average: hold as long as it's above the 20-day line, sell if it breaks below. There are many methods; the best one is the one that suits you. The difficulty in trading isn't the lack of methods, but the execution. If you mindlessly stick to one method, over 90% of people will have no issues. Simplicity is key.
3. Once a main upward trend is formed and there is no significant volume increase, decisively enter the market. Hold if there is an increase in volume, and hold if the downtrend hasn't broken with decreased volume. If there's a significant drop in volume and it breaks the trend, quickly reduce your position.
4. If there is no price movement three days after a short-term buy, consider selling. If the price drops by 5% after buying, implement an unconditional stop-loss.
5. If a coin has dropped 50% from its high and has fallen for eight consecutive days, it has entered an oversold channel. An oversold rebound is imminent and can be followed.
6. When trading coins, focus on the leading coins, only trade the leaders, and avoid lesser coins. This is because leading coins surge the most during rises and are the most resilient during drops. Don’t hesitate to invest; trading coins often goes against human nature. Don’t buy just because something has dropped significantly, and don’t avoid buying just because it has risen a lot. The coins you are most hesitant to buy often rise the most, while those you are eager to buy often fall the most. The strong will always remain strong; when trading leaders, the most important rule is to buy high and sell even higher!
7. Embrace the trend and go with the flow. The price at which you buy is not about being the lowest but about being the most suitable. You won’t gain an advantage just because the price is low because declines do not indicate a bottom. Abandon worthless coins; trends are king.
8. Don't let the thrill of profits cloud your judgment. Understand that the hardest thing in the world is to maintain consistent profits. Always review your trades seriously to determine if the outcome was due to luck or skill. A stable trading system that suits you is the path to sustained profitability.
9. Don’t trade just for the sake of trading. What does that mean? It means that if you are not confident enough that this trade will be profitable, do not force yourself to open a position. Staying in cash is an art; those who can buy are learners, those who can sell are masters, and those who can stay in cash are the grandmasters. The primary consideration in trading is not profit, but capital preservation. Trading is not about frequency but about success rate!
