A super stable and silly method for trading cryptocurrencies, ensuring that you make a profit without loss. There is a particularly silly but reliable method that can help you grasp all the profits; you need to ponder it slowly. When trading cryptocurrencies, there are three things you must never do.
The first thing is to avoid buying when prices are rising; you must learn to buy boldly when others are scared to death, and be cautious when everyone is rushing to buy. Get into the habit of buying during a downturn.
The second thing is not to put all your money into a single trade.
The third thing is to avoid trading with your entire capital; if your capital is fully invested, you become passive. There are plenty of opportunities in the market, and fully investing increases your opportunity cost.
Now let’s talk about a few tips for short-term cryptocurrency trading:
First, don’t rush to buy when the price is high; it may rise a bit more. Also, don’t rush to sell when the price is low; it may drop a bit more. Wait until the direction is clear before taking action.
Second, avoid trading during sideways movements; if you can't do this, many people will lose money in cryptocurrency trading.
Third, when looking at candlestick charts, try to buy during bearish candles and consider selling during bullish candles.
Fourth, if the price declines slowly, the rebound will also be slow; if the price drops quickly, the rebound will be vigorous.
Fifth, position building should follow a pyramid scheme; this is an old rule of value investing.
Sixth, if a cryptocurrency rises sharply or falls drastically, it will certainly move sideways for a period afterward. At this time, do not sell everything at a high point, and do not buy everything at a low point. After the sideways movement, it will change direction; if it drops from a high point, you must quickly liquidate your position.