Having traded cryptocurrencies for seven or eight years, I’ll speak from the heart: in the first two years, I lost 70%. It really came at a bloody price. Later, I slowly figured out some survival rules. I can't say it's foolproof, but at least it can help you avoid five years of detours.
A typical problem for retail investors is doing the opposite: holding on while losing money and running away as soon as they make a profit. In fact, you should do the opposite. You must be brave enough to take the profits you earn, and brave enough to cut losses at a certain level. Don't underestimate this point; just the discipline of 'lock in profits at 10% and stop loss at 5%' can save you countless times.
To talk about volume, the transaction volume in the market is the right to speak, and hitting a new high with low volume is very likely to still have a chance; after breaking through the 20-day moving average and pulling back with low volume, that is almost a free point to focus on the mainstream. Don't fly around everywhere, and don't fill your account with seven or eight coins at the same time. At most two or three; if you can't control your hand, you'll die quickly later. There are also rules for intra-day trading. Don't panic during a sharp drop; rebounds are often behind. Be careful of a blowout at the end of the day; the next day is likely to kill. Remember a few phrases: low volume rises still rise, high volume stagnates at the peak, and a huge surge must correct.
The market rhythm is always more logical than you think. Following the trend is key; don't predict, just follow. For short-term, focus on the 5-day line, for longer-term, look at the 20-day line. If it breaks, just exit. Don't get attached to strong coins; if they drop, it's not necessarily over. As long as the popularity is still there and the turnover is fierce, they often can rebound. If you're going to play, play with high odds. One important point is that after making a big profit, you must take a break and stay out of the market. The market will most likely harvest those who are overly excited. I've suffered too many losses like this; clearly made a profit but ended up losing it back. When you’re losing, don’t rush to trade desperately. Calm down and wait for the profit effect to come back before entering again. In the end, trading cryptocurrencies has never been about immediate gratification, but about enduring the mindset, enduring the understanding, and enduring the execution. Opportunities are never lacking; both bull and bear markets exist. What’s always lacking is whether you can really follow the rules. After eight years, I finally understand that trading cryptocurrencies is not difficult; what’s difficult is controlling oneself. Remember, the market will not disappoint those who are patient.
If you are not very familiar with certain cryptocurrencies, or need help in other areas, feel free to reach out to me. I will help you solve your problems and provide you with the most detailed analysis!#美SEC推动加密创新监管 $SOL
