Learn this most 'foolish' trading method; don't say you can't make money, it's hard to even lose!
After being in the cryptocurrency market for a long time, I realize that those who can really make money are not the smart ones, but the 'ordinary people who can execute'.
Experts do not rely on frequent operations to earn profits but on a simple and effective disciplinary system, steadily building wealth over time.
Today I will share a set of proven trading rules; even if you are a beginner, if you understand and follow them, you can avoid 90% of the detours.
The following 10 points are worth collecting and reading repeatedly:
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1. A strong coin falling for 9 days is a good opportunity to get in.
Don't be scared off by declines! Truly strong coins never stay silent for too long; consecutive large drops are often a sign of the main force washing the market, especially after a drop of 9 days, it is a signal of a 'golden buying point'. The weak cut losses, while the strong buy low; those who dare to enter at this time often earn the most.
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2. If any coin rises for two consecutive days, reduce your position first.
Greed is the root of losing money. Many people fantasize about skyrocketing as soon as they see a rise, but most face a technical correction after two consecutive increases. Understanding when to take profits is true maturity.
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3. Coins with an increase of over 7% have a very high probability of pulling back the next day
In the world of cryptocurrencies, violent price surges are often short-term games; what goes up must come down. If you see a 7%, 8%, or 10% rise the previous day, do you still want to chase it? That could very likely be a trap. The next day is usually a peak; those who understand will choose to wait and see.
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4. Previously strong coins should be touched again only after the bull market ends
Once glorious coins do not mean they will be strong forever. After a wave of bull market, it is extremely difficult to replicate the brilliance in the short term. Don't let 'nostalgia' bind you; the market only recognizes trends and doesn't discuss feelings.
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5. Coins that have been stagnant for three consecutive days should be given special caution.
The cryptocurrency market is a fast-paced battlefield. If a coin has been stagnant for three consecutive days, it indicates that the market has no interest in it. Observe for another three days; if there's no change, decisively switch positions, don't let time costs eat away at your principal.
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6. If you haven't recouped yesterday's costs today, run!
Losses are not scary; procrastination is. If you haven't stepped out of yesterday's decline today, you may very likely fall into stagnation or continue to decline. Timely stop-loss is the first quality of an expert.
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7. The magical law of the rise ranking: 'Three have five, five have seven.'
This is a rhythm that insiders in the cryptocurrency market know. If a coin rises for two consecutive days, the third day might adjust, but the fifth day is usually a key point. Day 5 = Harvest Day! Buy on dips and sell high when the opportunity arises.
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8. Both price and volume soaring is the real opportunity
Trading volume is the soul of the cryptocurrency market!
• Low position with increased volume, pay attention!
• High position with increased volume stagnation, exit!
Stop just staring at K-lines; traders who don't understand trading volume are like crossing the street in the dark without turning on the lights.
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9. Trend is king; going against the trend is death.
The primary criterion for selecting coins is not popularity, but trend!
• 3-day moving average turning upwards = short-term opportunity
• 30-day moving average turning upwards = medium-term initiation
• 80-day moving average turning upwards = main upward wave starts
• 120-day moving average turning upwards = long-term trend
In the face of trends, recognize the direction, follow the trend, and it can save you 80% of ineffective operations.
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10. Small funds must be stable; do not fantasize about getting rich overnight.
Many people think their capital is small and must take a gamble to turn it around. In fact, that's wrong; small funds need to emphasize strategy and discipline even more. As long as you minimize losses and maximize gains each time, your profits will naturally grow larger.
This market belongs to those who survive longer, not those who rush in.
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Final advice:
Don't trade cryptocurrencies full-time, and definitely don't borrow money to trade!
In this market, every cent of profit hides unseen risks and costs. No matter how much you earn from trading coins, it's not worth risking your life for it.
Written at last:
The cryptocurrency market is not a game, nor a casino, but a practice of cognition and human nature.
Those who can genuinely make money on this path,
Not the smartest, nor the luckiest,
But to the calmest, most rational, and most patient group of people.
May you not be swept away by emotions in the cryptocurrency market, not misled by fantasies, and rely on a simple system to find your own profitable path.