The cryptocurrency market is filled with opportunities and challenges. Many newcomers step into this field with dreams of quickly accumulating wealth from a few thousand to one million. However, the market is ever-changing; to achieve these goals, one must master the right strategies. Next, I will share some practical experiences; if you can remember and practice them, it’s equivalent to having succeeded halfway!
Short-term trading secrets
Selected cryptocurrencies
Focus daily on the top ten mainstream cryptocurrencies, closely aligning with current market hotspots and news, while also referencing daily MACD golden crosses, BOLL openings/closures, and other technical indicators. Then, comprehensively analyze market trends to select coins with larger price fluctuations for trading. Mainstream cryptocurrencies have high market attention and liquidity, while volatile assets can provide more profit opportunities.
Reasonable position management
Taking 50,000 as an example, divide it into 20%, which is 5 parts, using only one part for each trade. This approach effectively diversifies risk and prevents significant capital loss due to a single trading mistake.
No full positions allowed
Never invest all your funds in the market; at most, use 50% of your funds for trading, keeping the remaining 50% as reserve capital, patiently waiting for the right opportunity. The market is unpredictable, and retaining sufficient funds allows you to act decisively when opportunities arise.
Control trading frequency
Limit trading to no more than 3 times a day; control your trading impulses. Frequent trading not only increases transaction costs but also easily causes one to lose rationality amidst market fluctuations, leading to poor decisions.
Refuse to average down
If you experience a 30% loss after entering a position, you should exit immediately. This indicates that you chose the wrong entry point, and holding on may lead to even greater losses. Don’t gamble on luck; timely stop-loss will preserve your capital for the next opportunity.
Strictly set stop losses
Set a 30% stop loss line; once the price falls below this line, exit unconditionally. Holding onto losing positions is a big taboo in trading; the market will not change trends because of your persistence. Holding positions will only lead you into deeper trouble, ultimately resulting in liquidation.
Quick in and out
Never 'fall in love' with candlesticks; make decisive decisions and enter and exit quickly. The cryptocurrency market changes rapidly; opportunities are fleeting. Seizing brief profit opportunities and locking in gains in a timely manner is crucial.
Follow the trend
Trend is king; in trading, you should follow market trends, only trading mainstream cryptocurrencies and avoiding participation in altcoins. Mainstream cryptocurrencies have stronger risk resistance and greater upside potential, while altcoins are more susceptible to market sentiment and manipulation, posing higher risks.
Cryptocurrency survival mantra (must remember)
Early drop, late rebound: When there is a significant market drop in the morning, don’t rush to cut losses. Generally, there will be a chance for a rebound in the afternoon.
Afternoon rise, evening drop: When the market rises sharply in the afternoon, consider appropriately reducing positions, as the market is likely to retrace in the evening.
Volume shrinkage continuation: When the market rises with decreased volume, it often continues to rise; when it falls with decreased volume, it typically continues to decline.
Rise before good news, fall after: Before major meetings or positive news announcements, the market usually rises, but it often falls once the news is released.
Daytime decline, evening rise: When the domestic market experiences a continuous significant decline during the day, consider bottom-fishing, as foreign investors may enter and drive prices up around 21:30.
Pin signal: When buying and selling, the key signal is the pin. The deeper the pin, the stronger the buy and sell signals.
Heavy positions lead to liquidation: When you hold heavy positions, the risk of liquidation greatly increases, as your account is likely on the exchange's watch list for liquidation.
Short positions must fall: After your short stop loss is executed, the market often tends to drop. This is a tactic used by market makers; if they don't trick you into exiting or cause a liquidation, the market won't easily decline.
Stop loss reversal: When you are close to breaking even, a rebound often suddenly halts. This is because the market doesn't want you to easily close your position and escape.
Profit-taking surge: When you take profits, the market may experience a significant surge. If you don’t exit, it becomes more difficult for market makers to drive the price up.
Excitement crash: When you are overly excited, a crash may arrive as expected. Your excitement is often a trap set by market makers to lure you in.
Penny-less projects rising: When you have no money, you will find that every project is rising, leading to FOMO (Fear of Missing Out) emotions, urging you to enter the market. This shows that the market is manipulated with a probability of over 80%. Therefore, you need to manage your position well and wait patiently before confirming market maker actions before entering. Once you enter blindly, you become 'meat' for the exchanges, subject to slaughter. Trading is a contest of patience, composure, and timing.
The cryptocurrency market is full of challenges, but as long as you master the right methods and strategies, you can establish yourself in this market. I have rich experience in cryptocurrency trading and keen insights into market trends. If you aspire to achieve wealth growth in the cryptocurrency sphere but don’t know how to operate, feel free to follow my lead, and let’s create brilliance together in the cryptocurrency market!
Follow me @大师兄说币 ; many souls are lost on the crypto road, and I only ferry those who are destined.
