Don't scroll away! If the numbers in your crypto account are still fluctuating like an 'ECG,' and if you're holding a five-figure principal hoping to double it within the year, this content will save you three years of detours. After all, my experience of losing from 3U down to just transaction fees and crying in front of the candlestick chart is much more real than those 'master classes.'
To be honest, it's too easy for newcomers in the crypto space to fall into pitfalls: either they chase high prices based on social media 'insider information' and end up being the 'bag holder' as soon as they enter the market; or they leverage contracts aggressively and get forcefully liquidated with a small fluctuation, then turn around and curse the market for 'harvesting chives.' I went through this as well, until I lost my living expenses down to just two digits, I finally understood: short-term trading is not about 'betting big,' but about making money through rules.
Today, I'm sharing the core logic I've understood over the past two years, which is especially suitable for friends with funds under 1 million. If you follow this, you can avoid at least 80% of the pitfalls. First is the 'trend anchoring method.' Don't keep staring at the 1-minute chart and operating blindly; open the 4-hour chart to look at the moving averages. When the 5-day, 10-day, and 20-day moving averages are clustered together, don't act resolutely; at this point, the market is 'murky water,' and entering will only choke you. Once the moving averages start to diverge, and the short-term line forms a 'bullish arrangement' above the long-term line combined with increasing trading volume, that is the signal to enter the market. It's like when the tide rises; going with the wave is definitely easier than swimming against it.
Secondly, the 'three principles of signal filtering' is a 'lifeline' I have sifted out from countless losses. First, only trade mainstream cryptocurrencies. Those with flashy names and market caps ranked hundreds outside should not be touched, no matter how high they rise; their volatility is crazier than a roller coaster, and you never know when they will 'collapse.' Second, refuse to go 'all in'; only use 20% of your funds each time you enter the market. Even if your judgment is wrong, you still have the opportunity to average down or stop loss. I have seen too many people exit the crypto space directly due to a single all-in mistake. Third, strictly set take profit and stop loss; for take profit, look at recent highs, and set the stop loss below the entry price by 5%. When the time comes, just exit without hesitation. Remember: protecting your principal is more important than how much you earn; as long as you have the green mountains, you don't have to worry about firewood.
Some people might say, these principles sound simple, but they are hard to implement. I totally understand! Back in the day, I often thought, 'I'll wait a bit longer, maybe it will rise,' only to turn profitable trades into losses. Later, I set a rule for myself: write down the take profit and stop loss prices in a memo before entering the market, and execute them directly at the set time, never relying on 'feelings' for decisions. Now, I spend no more than 1 hour a day watching the market, and I earn more steadily than when I used to monitor it every day.
By the way, old players, don't scroll away, there's an advanced tip here: for short-term trades, you need to 'borrow strength.' For example, when the industry has favorable policies, follow the hot topics to find related mainstream cryptocurrencies, but don't chase those that have already risen by more than 30%. Look for those that have just started and have increasing trading volume; that's the opportunity to 'profit.' If the overall market is declining, even if some cryptocurrencies look strong, don't easily enter the market. When the market is falling, those that are 'rising against the trend' are likely 'traps.' Stay tuned to Yangyang.
