I am 35 years old this year. I entered the cryptocurrency market ten years ago with only 50,000 and started my professional trading career, now my assets exceed 50 million. There is a very simple method for trading, but this method can almost consume all profits, so learn slowly. First, we should never do three things in cryptocurrency trading.
The first thing is to never buy during an uptrend; be greedy when others are fearful and fearful when others are greedy. Make it a habit to buy during a downturn.
Secondly, never go all in.
Thirdly, never be fully invested. Being fully invested makes you very passive, and the market is never short of opportunities. The opportunity cost of being fully invested is very high.
Additionally, let's talk about the six maxims of short-term cryptocurrency trading.
The first is that after a consolidation at a high price, there usually will be a new high. Conversely, after a consolidation at a low price, there will typically be a new low, so we should wait for the direction of the trend to become clear before making our move.
The second is to avoid trading during sideways movement. Most people lose money in cryptocurrency trading because they can't adhere to this simplest principle.
The third is when selecting candlestick patterns, buy on a bearish closing and sell on a bullish closing.
Fourth, a slowing downtrend leads to a slow rebound, while a speeding downtrend leads to a rapid rebound.
Fifth, use the pyramid buying method to build your position; this is the only unchanging principle of value investing.
Sixth, when a cryptocurrency continues to rise or fall, it will inevitably enter a consolidation state. At this point, we don't need to sell everything at a high or buy everything at a low. Because after consolidation, there will inevitably be a trend change. If it changes downwards from a high, we need to clear our positions in time.
