Practical tips: One, observe after high and low consolidations.
When the market is in a high or low sideways consolidation phase, observing is a more cautious strategy. The emergence of sideways movement is often a prelude to a trend change; after digesting previous fluctuations, the market will ultimately choose a clear direction. Acting rashly at this time may lead to unnecessary losses. Waiting for the market to clarify and then following the trend is the rational approach. Seniors have often reminded, 'During sideways movements, observing is more valuable than blind trading.'
Two, do not cling to hot positions; adjust positions according to the market.
In short-term operations, popular positions are often the result of speculation. Once the enthusiasm fades, funds will exit quickly, leaving investors stuck in a passive situation. Therefore, seniors suggest not to cling to popular positions for too long, but to adjust flexibly and maintain agility at all times. As he said, 'Short-term popular positions come quickly and leave quickly; a little carelessness may lead to chasing highs and cutting losses. Successful short-term operations are not about blindly following trends, but about staying alert and achieving 'start to finish, end up empty.'
Three, hold firmly when a gap up occurs in an upward trend.
If a bullish candle with a gap up appears in an upward trend, accompanied by increased volume, it indicates that the market has entered a phase of accelerated rise. At this time, one should remain calm and hold positions firmly, as this situation often leads to a significant rise. Seniors refer to this as the 'acceleration period', emphasizing the need to have firm beliefs during this phase, unaffected by short-term fluctuations, in order to achieve substantial profits.
Four, decisively exit on large bullish candles.
Whether the market is at a high or low, the appearance of a large bullish candle is a signal to exit. In this case, even if a limit up is seen, one should decisively close positions because, in most cases, a pullback will follow after a large bullish candle. Seniors tell us, 'No matter how tempting the profit is, taking it while it's good and decisively closing positions is key to avoiding profit withdrawal.' The core of this strategy is 'knowing when to enter and exit'; one must guard against risks and control profit drawdowns in all situations.
Five, buy on bearish candles above the moving average, sell on bullish candles below the moving average.
Moving averages are one of the key references for short-term operations. If the stock price is above an important moving average and a bearish candle retracement occurs, it is a suitable buy signal; conversely, a bullish candle below the moving average may indicate weakness in the rise, suitable for selling and exiting. In short-term investing, one generally focuses only on daily moving averages or attack lines; it is not advisable to linger or hold positions for too long. Seniors remind, 'Do not exceed a week; act within three days, and do not dwell on missed opportunities.' Short-term trading emphasizes speed and precision, and holding for too long increases risk.
Six, do not sell on spikes, do not buy on drops, and do not act in sideways markets.
In the cryptocurrency circle, market volatility is frequent, and this principle is regarded as a basic survival rule. If the current price is not significantly higher than the buying price, one should not sell easily; conversely, if there is no significant decline, there is no need to rush to buy. When the market is in a sideways state, it is safer to observe. Seniors call this 'steady first', where any rash trading may lead to losses. Long-term profits depend not on frequent entry and exit, but on reasonable timing for entry and exit.
Seven, better to enter less than to enter more, act within your capacity.
In the cryptocurrency circle, ensuring flexibility is key. Even with great confidence, it is unwise to invest a large amount of capital all at once; reasonable position distribution is particularly important. Seniors remind us, 'Better to enter less than to be greedy', because the market can experience unexpected fluctuations at any time, and diversifying capital can reduce the risk of a single investment. For every trade, a reasonable position ratio should be set to avoid being caught off guard by sudden market movements.
Eight, learn to interpret market news.
In the cryptocurrency circle, the influence of information cannot be underestimated. Market news often directly triggers significant price fluctuations, which could be a big rise or a big drop; thus, investors should learn to interpret market information, especially major events and policies. Seniors suggest that newcomers should mainly observe when encountering major news, as excessive intervention may lead to unnecessary losses.
Nine, master technical indicator analysis.
Technical analysis plays an important role in the cryptocurrency circle. Seniors suggest that beginners should systematically learn technical indicators, develop a learning plan, and master analysis tools such as moving averages, KDJ, Bollinger Bands, candlestick patterns, volume-price relationships, and capital flow. Technical analysis requires long-term accumulation; it is not achieved overnight. Mastering technical analysis can help investors judge buy and sell points and reduce unnecessary losses.
Ten, make a trading plan to avoid frequent trading.
Frequent trading not only incurs high fees but also disrupts trading mentality, leading to emotional operations. Seniors emphasize, 'Trading requires planning, and should not be done blindly.' In the cryptocurrency circle, frequent entry and exit often mean greater uncertainty. An effective trading plan can help investors maintain rationality and clarity of thought.
Eleven, do good risk control, set stop-loss and take-profit points.
Before each trade, set reasonable stop-loss and take-profit points to keep risks within acceptable ranges. When reaching stop-loss or take-profit points, one should exit decisively, rather than greedily pursuing more profits. Price fluctuations in the cryptocurrency circle are severe; seniors' experiences tell us, 'Rational stop-loss and take-profit are key to successful trading.' Even experienced investors cannot accurately predict the market; therefore, comprehensive risk control measures are essential for every investor.
Strong recovery, assets doubled! Follow Ju Dong, layout in advance, easily reap big profits.
Stay tuned: A2Z CFX