Don't chase the rise and fall anymore! This simple method will help you steadily profit in the crypto world without flipping over!
Trading cryptocurrency has a pretty simple but incredibly effective method. While it can't make you rich overnight, it can help you steadily grasp profits, learning as you go until you get the hang of it.
First, let's talk about three things you absolutely must not do when trading cryptocurrency.
First, don't follow the trend to buy when the price is surging. Remember that saying: be bold when others are scared, and be cautious when others are greedy. You need to develop the habit of buying when the price is falling; at this time, everyone else is panicking, and you need to seize the opportunity to act.
Second, absolutely don't place large orders. This is like betting on a gamble, the risk is too high. We trade cryptocurrency to make money, not to gamble with our lives, so definitely don't do that.
Third, never go all in. Once you go all in, you're at the mercy of the market; there are plenty of opportunities out there, so there's no need to stake all your money. The opportunity cost of going all in is too high; if the market turns bad, you won't even have a chance to recover.
Now let's talk about six rules for short-term trading that can help you avoid a lot of detours.
First, after the price has consolidated at a high level, it often will surge again to reach a new high; after consolidating at a low level, it is likely to drop further to reach a new low. So, you should wait until the direction of the change is clear before acting; don't rush to place bets.
Second, don't trade randomly during sideways movement. Many people lose money in cryptocurrency because they can't control their hands, trading aimlessly during sideways movement. We need to stay steady and wait for market clarity before acting.
Third, when selecting candlesticks, buy when a bearish candlestick closes and sell when a bullish candlestick closes. This technique may be simple, but it is quite effective and can help you seize many opportunities.
Fourth, when the speed of decline slows down, the rebound will also be slow; when the speed of decline accelerates, the rebound will be quite fierce. We need to adjust our trading strategies based on this pattern.
Fifth, when building positions, you should use the pyramid method. This is a steadfast rule in value investing, and doing it this way is guaranteed to be correct $BTC
