There aren't so many twists and turns in trading cryptocurrencies; just understand a few key points. The crypto market has risen from debt to recovery, and now I share some insights with my brothers.
Don't get too attached to altcoins; avoid greed with hot coins. Altcoins have their cycles; after making a profit, change your position in time, or else it will drop back to the original point, rendering all your hard work useless. FIL and LUNA are examples.
Key Signals After Sideways Movement
If the price consolidates at a high level before making another rise, be cautious of false signals and consider reducing your position or exiting.
If the price consolidates at a low level, breaks a new low, and then quickly rebounds, it is often the final washout by the main force, so hold your coins firmly.
Recognize Strength and Weakness in the Environment
When the market is poor, if it can rise while consolidating against the trend, that indicates strength.
When the market is good, if it consolidates against the trend or even dips slightly, beware of correction risks.
Only add positions when making profits; do not average down when losing.
The core of position management is to add to your position in line with the trend, not to keep averaging down during losses, as that can lead to being trapped. Cut losses and let profits run.
Don't exit a trend easily
Once you identify the bottom, prices often rise in a pattern of "advance two, retreat one". Fluctuations during this process are just washouts; hold your convictions to ride the main trend.
Choose the right targets based on the right direction
Top players analyze sectors, second-tier players look at coins, third-tier players focus on indicators, and beginners rely on luck. Engaging with hot topics attracts capital attention, boosts popularity, and increases win rates.
The core of technical analysis is volume and price
All indicators are based on volume and price. Real analysis should focus on the relationship between trading volume and price. Ignoring volume and price in favor of indicators can easily lead to misjudgments.
Go with the trend: look for support in an uptrend and resistance in a downtrend.
In an upward trend, approaching the support line is a point to add positions; in a downward trend, encountering resistance and rebounding presents an opportunity to short or exit.
There are many opportunities in the crypto world, but few rules. Being accurate, disciplined, and quick to act is the core ability for long-term survival. May you remain clear-headed, avoid greed, and achieve steady profits. Surviving in the crypto world is more important than getting rich quickly.
