Some truths about trading, written for those who want to survive longer in the cryptocurrency world.
A senior once told me a phrase that I remember to this day.
He went from 50,000 to 80 million with just one sentence:
The cryptocurrency world never lacks opportunities, but it lacks people who are emotionally stable.
Most people in the market are actually led by their emotions.
If you can manage your emotions, the market is a cash machine.
What really makes a difference is not the news, not the feelings, but the trading strategy.
The following are practical principles that I have repeatedly verified:
Think clearly before entering the market, don’t chase just because you see movement.
After a period of consolidation at a low level, a sudden drop is often an opportunity; after a period of consolidation at a high level, a spike usually means it’s time to sell.
When there’s a rapid rise, you need to know when to sell; during a rapid fall, you should be brave enough to buy; when the market is stagnant, it’s often building up for a direction.
In the morning session, emotional release makes big drops easier to find opportunities, while big rises require learning to reduce positions.
In the afternoon and evening sessions, don’t chase big rises, and big drops are better suited for waiting until the next day.
Don't sell on a rise, don't buy on a plunge; during the consolidation phase, it’s better to watch the show.
Be brave to buy on bearish candles, be bold to sell on bullish candles; follow human nature, and you will never make money.
Having a full position is a major taboo in trading; taking profits and cutting losses is not a technical issue, but a survival issue.
Ultimately, trading cryptocurrencies is essentially about trading mindset.
When you’re greedy, you don’t see the risks; when you’re afraid, you can’t seize the opportunities.
Not chasing rises and not panicking on falls is how to make trading a long-term endeavor.
Several trading methods I commonly use and find most practical, regardless of whether you are a novice or an experienced trader, these scenarios are unavoidable:
1. Volatile markets
Focus on buying low and selling high, watch the range and BOLL, grasp support and resistance, don’t be greedy.
2. Breakout
The longer it consolidates, the harder it moves. If you see the right direction, execute decisively.
3. Trend markets
Once it moves in one direction, only trade with the trend. Don’t panic on pullbacks, buy on rebounds.
4. Key level trading
Important support and resistance levels are often points of capital competition, with the highest success rates.
5. Pullback rebounds
After big rises and falls, the period of emotional recovery is often the best time to trade.
6. Time period differences
Daytime is relatively stable, suitable for conservative trading; night and early morning have larger fluctuations, suitable for aggressive trading, but the risks are also higher.
A final reminder:
The cryptocurrency market is indeed highly volatile with many opportunities, but those who can stay are never the most aggressive, but the calmest.
Treat trading as a long-term project; go slower, but you will go further. $BTC #加密市场观察
