From 50,000 to 86.49 million, remember these 7 phrases in the crypto world!
Last weekend, while having tea, I met an old brother — entered the circle in 2017, trading 50,000 USDT to almost 90 million now.
It's not talent, nor insider information, but a few simple logics; the hard part is just sticking to it without getting carried away.
1: Follow the leaders, ambush the second and third
When the market starts, first look at the leading coins in the sector, then watch for the follow-up coins' rally opportunities.
2: Focus on trading volume
Slowly accumulate in low volume; when high volume appears at a low level, it can be a strong strike;
When high volume appears at a high level, immediately take profits; don't get too attached.
3: Enter on low volume pullbacks, exit on high volume
A low volume pullback is an opportunity; a high volume pullback is often a signal that the main force is offloading.
4: Only look at RSI and MACD indicators
RSI < 10 is likely a bottom-fishing opportunity; RSI > 85, be careful of a sudden dump.
Only look at MACD divergences; delete all other messy indicators.
5: Don't be overly reliant on fundamentals
In the short term, just divide coins into two categories — those that can rise and dead coins. Wherever the hotspots are, that's where the funds will be, and that's where the opportunities lie.
6: Moving averages are trend references
When the 5-day and 10-day lines are rising and the coin price is above, it indicates the trend is not broken.
If it breaks below the moving average with high volume, it's mostly done for. Moving averages can also help with trailing stop losses and take profits.
7: The strong stay strong, the weak stay weak
Don't always fantasize about bottom-fishing; seasoned traders die on the bottom-fishing path. Following the trend is the way to go.
The old brother also casually tossed out a few mantras:
Don't sell without a rise, don't buy without a drop; don't act during sideways movement.
Buy on bearish candles, sell on bullish candles.
After a long period of sideways movement, a breakout at a high level is a selling point, while a breakdown at a low level is a buying point (in conjunction with MACD divergence).
If you believe in it, hold it; if you don't, walk away; profit and loss are not the basis for trading.
In the short term crypto world, it's not about who is smarter, but who can control their impulses and stick to the discipline.
Remember, just do it; time + discipline = compound interest.
