1. At the time of entry, do not just look at the cryptocurrency K-line trend, especially for short-term trades where you also need to look at the 30-minute K-line. The market must be stabilizing and resonating at that moment before you can enter. For example, sometimes you see a K-line with a long upper shadow and feel there is no opportunity, but the next day a big bullish candle or even a limit-up appears. In fact, if you look at the 30-minute K-line, you can see the subtlety.
2. If the trend and order are not right, just looking once more is a mistake. You must go with the trend, and the order of rising should not be disrupted.
3. If you are not in a hot spot or a potential hot spot for short-term trading, it is better not to trade.
4. Abandon all impulsive entries. Trade your plan, and plan your trades.
5. Anyone's views or opinions are merely references; you need to have your own careful thought and serious analysis.
6. First lock in the direction and then select individual coins. If the direction is right, you will achieve twice the result with half the effort; if the direction is wrong, your efforts will be in vain.
7. Get involved with coins that are currently rising. Trying to guess the bottom is a big taboo; you always feel a rebound is imminent, only to face a final shakeout. Cryptocurrency prices always move towards the direction of less resistance, so entering coins that are on the rise means choosing a direction with less resistance.
8. After significant gains or losses, empty your position and reassess the market and yourself. Clarify the reasons for significant gains or losses before taking action again. After many years of trading, I've found that emptying your position after major gains or losses has a success rate of over 90%. Ultimately, the challenge in making money lies not in the method but in execution.
A trading system is a weapon that allows you to achieve stable profits.
It can help you mark key positions, discover entry signals, and find trading opportunities that can make you money.
So, to put it another way, as long as you have a stable trading system, just act on the opportunities that arise within the system. If you incur losses, you can always take revenge by doing what you should do, leaving the rest to the market. In the end, you will always be able to cover losses with profits.
However, 99% of people's biggest problem is that they do not have their own trading system, so they fear losing money when trading. Because once that money is lost, it cannot be earned back. Even if they earn it back by luck, they will eventually lose it all by skill.
Five rules for trading cryptocurrencies in the crypto circle, I suggest keeping them for reference.
A rapid rise and slow fall indicate accumulation.
Rapid rise but slow fall indicates that the dealer is accumulating chips, preparing for the next round of rising.
A rapid fall and slow rise indicate distribution.
A rapid fall but slow rise means that the dealer is gradually selling off, and the market is about to enter a downward cycle.
Do not sell when there is volume at the top; if there is no volume at the top, run quickly.
A large trading volume at the top may indicate further rises; but if the trading volume at the top shrinks, it indicates insufficient upward momentum, so exit as soon as possible.
Do not buy when there is volume at the bottom, but you can buy when there is sustained volume.
A large volume at the bottom may indicate a downward continuation, requiring observation; sustained volume indicates that funds are continuously entering, and buying can be considered.
Trading cryptocurrencies is trading emotions; consensus is trading volume.
Market sentiment determines the volatility of cryptocurrency prices, and trading volume reflects market consensus and investor behavior.