Dear cryptocurrency enthusiasts, today I want to share with you some good advice on market trading. These tips are not only simple and easy to understand, but have also been tried and tested in actual combat. If you are still worried about how to grasp the pulse of the market, then this article may become your investment guide.
First, let’s unpack the wisdom behind these mantras. "Buy horizontally, buy pits, but not vertically, the selling point is at the boiling point." This sentence tells us to look for buying opportunities when the market moves sideways or pulls back, rather than chasing prices when prices rise straight up. Because often when the market is the most lively and people’s emotions are the highest, it may be the best time to sell points.
Next, "continuous small increases are real increases, and continuous large increases require exiting the market." This sentence reminds us that a steady upward trend is more likely to continue, while a sharp rise in the short term often indicates the accumulation of risks. It is wise to exit at the right time to protect profits.
Next, "after a sharp rise, the price must fall back, and do not dig a deep pit or buy too much", which means that after a sharp rise in prices, there will often be a pullback, and it is not advisable to blindly buy in large quantities without sufficient adjustment.
"The main rise will accelerate to the top, so sell quickly when it falls sharply and sell slowly when it rises slowly." This sentence tells us that in the main upward wave, once the rise accelerates, it may be a signal that it is approaching the top. In the face of a rapid decline, you should sell immediately to reduce losses. On the contrary, if it is a slow rise, you can also adopt a strategy of selling slowly.
"A sharp drop without volume is a threat, a slow drop with large volume is a sign of haste." This emphasizes the importance of trading volume in judging market sentiment. If prices fall sharply but trading volume does not increase, it may be due to market panic rather than substantial selling pressure; if prices fall slowly but trading volume increases, it indicates substantial selling pressure and you should exit quickly.
"If the price breaks through the lifeline, don't hesitate to do the swing", the lifeline usually refers to some important technical indicators, such as moving averages, etc. Once the price breaks through these key support levels, it often means a change in trend, and action should be taken decisively at this time.
"Look carefully at the daily and monthly lines, and follow the main force to build positions." This sentence reminds us that we should not only pay attention to short-term price fluctuations, but also look for investment opportunities from long-term trends and make arrangements following the flow of large funds.
"If the coin price goes up but there is no volume, don't stand by to lure more buyers if the main force is trying to lure more buyers." This sentence warns us that if the price goes up but there is no volume support, it may be that the main force is trying to lure more buyers, and we should not blindly follow the trend at this time.
Finally, "a new low with shrinking volume is a bottom signal, and an incremental rebound is a good time to enter the market." This sentence tells us that when the market hits a new low with shrinking volume, it may be a signal of the bottom; and when the market starts to recover with the cooperation of trading volume, it is a good time to enter the market.
The above tips are a summary of my many years of experience in the cryptocurrency market. They are simple yet profound, easy to understand yet meaningful. However, any investment has risks, and we cannot rely solely on these tips to make decisions.
In actual operation, we also need to combine the latest market trends, constantly learn and improve our investment skills. At the same time, we must also have a clear understanding: the market is complex and changeable, and no rule can guarantee 100% accuracy.
Therefore, I would like to remind you to be cautious when investing, do not blindly follow the trend, and do not invest funds that exceed your ability to bear. While enjoying the excitement and opportunities brought by the cryptocurrency market, you must also do a good job of risk management and protect your investment principal.
Finally, I hope this article can help everyone who is interested in the cryptocurrency market. If you have any questions or want to learn more about investment knowledge, please leave a message in the comment area. Let us continue to explore and grow in the world of cryptocurrency together!