Trading cryptocurrencies may seem simple at first glance, but there are pitfalls everywhere when you actually get into it. If you want to make money in the long term, you can't rely on luck; you need to follow a few solid rules. These methods are not advanced, but there are really not many who can implement them.
The first and most important rule is to not follow your emotions. When prices are soaring, everyone is rushing in, but you shouldn't; when prices are plummeting, while others are panicking, you should calmly look for opportunities. This is easy to say but hard to do. I've made mistakes myself—chasing highs and getting trapped, cutting losses at the first sign of a pullback; these are all lessons learned.
The second rule is to never invest all your money at once. Going all in is like betting your entire fortune; once your mindset is disrupted, your actions will become distorted. The market is never short of opportunities; if you don't have cash on hand, you can only watch when opportunities arise. Keep some reserve funds to feel more secure.
In terms of specific operations, I've summarized a few experiences that I've tested in practice:
If the direction is unclear, don’t make a move. When the coin price is consolidating at a high level, it may sometimes push to a new high; at a low level, it may continue to break new lows. Don’t guess; wait for the market to establish a direction first.
Try to trade less during consolidation. Most people lose money by frequently entering and exiting during these times; the transaction fees can wipe out your profits, and your rhythm gets disrupted.
Buy on big drops and sell on big rises. For example, if a daily line closes with a large bearish candle, consider buying in batches; conversely, during a large bullish candle, consider selling a bit. This rhythm is very practical.
Pay attention to the speed of the decline. If the decline is slowing down, rebounds generally lack strength; but if it suddenly accelerates downward, the rebound may also be quite fierce. This change can help you judge the timing.
Building positions is like stacking blocks, starting from the bottom. The more it drops, the more you should buy slowly; this way, you can average your costs and not fear short-term declines.
After a significant rise, there will be a consolidation; after a significant drop, there will also be consolidation. Don’t sell your entire position during consolidation, and don’t buy the bottom with your entire position either. The key is to see which direction it breaks out after consolidation, and then adjust accordingly.
Ultimately, trading cryptocurrencies is a battle with yourself. These methods sound simple, but executing them requires strong discipline. I’m not seeking to get rich overnight; as long as I can stabilize and earn gradually, that’s enough.
If you are feeling confused about trading recently, you can reach out to Ke Jie for specific entry points and timing; she will notify you right away!