The stupidest way to trade cryptocurrencies is often the most effective. But on this path, 90% of people cannot persevere.
To be honest, over the years I've seen too many people get liquidated, exit the market, and leave with their heads down. It's not that they lack talent; it's that they keep making three fatal mistakes:
First, chasing after rising prices. When the coin rises, they become greedy, thinking, 'This wave can soar,' but once they buy in, the price drops.
In reality, when panic selling occurs, no one dares to buy. Only those who can make 'buying on dips' a habit truly enjoy the benefits of the cycle.
Second, over-leveraging. They think that being right about the direction means they can make a fortune all at once, only to be shaken out by the big players, who drop a few needles and clear the field.
Third, going all in. When emotions rise, they go All in, and even if they guess the trend correctly, they can't flexibly switch positions or adjust their holdings, missing out on real opportunities while helplessly watching.
Ultimately, the cruelest aspect of the crypto world is:
You don't lose because of the market, but because of your own habits.
I have summarized a set of 'six-character mantras' for short-term trading. The simpler the principle, the more it is overlooked:
1. If the high-level consolidation is not over, new highs are often still ahead; if the low-level consolidation has no bottom, it easily creates new lows. Don't act before the price change.
2. Stay put during sideways movements; never enter the market. Most people lose their patience during fluctuations.
3. Buy on bearish daily closes and sell on bullish daily closes. Following the emotions is much better than guessing on your own.
4. Slow declines won't bounce high; quick drops lead to sharp rebounds. Only when you clearly see the market rhythm can you identify opportunities.
5. Use a pyramid-style position building, entering in batches, and always leave some bullets.
6. After significant rises or falls, there must be consolidation, and after consolidation, there will definitely be a price change. Don't go all in at the highs, nor go all in at the lows; wait for signals before deciding your fate.
The market is never short of opportunities; what it lacks are those who can stay steady, endure, and survive.
If you can achieve these, the path to trading cryptocurrencies will only get wider.
You always think that experts are just lucky, but in reality, they are simply using their simple methods effectively.