Hot cryptocurrencies are like a gust of wind; don't get attached to fighting for them. When altcoins have made a certain profit, they should be swapped out in a timely manner. You must understand that altcoins cannot keep rising indefinitely; after trading, they need to be exchanged; otherwise, when they fall back to their original point, all your previous efforts will be in vain, as seen in the cases of FIL and LUNA from that year.
There are tricks hidden in the price trends of cryptocurrencies. After a period of horizontal movement at a high position, when it surges again, you must seize the opportunity to prepare for selling; be wary of the main force trying to induce buying, and do not hesitate to reduce your position or exit when necessary. Conversely, if there is horizontal movement at a low position and a new low is created, but it quickly rebounds, it is highly likely that the main force is making a final washout; at this time, you must stay calm and not get washed out.
The market environment is also crucial. When the environment is poor, a price that moves against the trend may rise; a small upward move against the trend might lead to a significant rise; however, when the market environment is good, a price that moves against the trend may experience a small drop, and a small drop against the trend could even lead to a significant decline.
Regarding position management, it may differ from what many old players think: add to your position only when making profits, and do not average down when losing. Positions should be increased when the coin price breaks through previous highs, not when it is declining; otherwise, you will only incur greater losses and end up unable to act. You must cut losses and let profits run.
If you are sure about the bottom price, the coin price often rises in a 2-up, 1-down manner; at this time, do not doubt it, as there may be great surprises ahead. Especially when there is a trend upward, it often involves both pulling up and washing out; do not easily get off the train.
In the cryptocurrency world, top players first look at sectors, choosing hot sectors with high popularity and high win rates; second-rate players only look at individual coins; third-rate players only look at indicators; and the lowest-tier players are just gambling. Therefore, it is important to look at sectors before buying cryptocurrencies.
There are indicators that change with volume and price; volume and price are the source of the indicators. If you don't look at volume and price but only trust the indicators, trading cryptocurrencies will only leave you worried. After all, indicators are calculated based on coin price and trading volume; true technical analysis must consider volume and price, as a price increase requires significant capital to drive it.
Furthermore, in an upward trend, look for support; in a downward trend, look for resistance. When the price of a coin is in an upward trend, operating based on support lines has a higher success rate, and a pullback is an opportunity for a low buy; in a downward trend, operating based on resistance lines has a greater chance of success, and you can choose to go short or exit.
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