Investing in cryptocurrencies to make money doesn't necessarily require being a genius. Sometimes, following some simple and straightforward methods can be more stable and easier for survival than chasing trends. The following 10 rules are summarized from my practical experience over the years, and I hope they can help you avoid detours.
1. A strong coin that has fallen for 9 consecutive days is often a signal to enter.
A strong trending coin generally won't drop for too long after a high-level pullback. If it falls for 9 consecutive days, it should be taken seriously, and it's advisable to build positions gradually.
2. For coins that have risen for two consecutive days, be sure to partially take profits.
Most coins that rise for two consecutive days will either fluctuate or pull back. Don't be greedy; it's essential to secure profits.
3. If a coin rises more than 7% in a day, the next day's peak is likely a selling point.
Do not chase highs; maintain a wait-and-see approach, especially for non-hot coins. A steep rise often leads to a drop the following day.
4. For once-popular coins, wait for the tide to recede before entering.
Sentiment is useless; trends are the most important. Many people are trapped in high-priced 'star coins' because they refuse to acknowledge that it has already declined.
5. For coins that have been stagnant for three days, decisively adjust your positions if there is still no movement.
Coins with no momentum will only waste your time and opportunity cost. If there is no reaction after three days, move on.
6. If the next day you can't even recover the previous day's cost, it's time to cut losses.
Holding on without action will only make you more passive; you cannot stubbornly hold on. The market will not reward emotional decisions.
7. The 'Three-Five-Seven Law': For coins that have risen for two consecutive days, you can buy low; usually, the fifth day is the best selling point.
Many short-term markets have 'inertia rises', especially when market enthusiasm is high. The fifth day is an important observation point.
8. The relationship between volume and price is key: low volume at a low price = opportunity, high volume at a high price = risk.
If you can't understand candlestick charts, focus on trading volume. A volume increase is a signal to start, while high volume at a peak indicates that the main force may be unloading.
9. Only trade coins in an upward trend; going with the trend increases your chances of success.
Simply look at the moving averages:
— 3-day line trending up = short-term rise
— 30-day line trending up = medium-term rise
— 80-day line trending up = primary upward wave starting
— 120-day line trending up = long-term upward trend
Even small funds can turn around, but one must control oneself.
Do not borrow money to invest in cryptocurrencies, do not go all-in or blindly chase trends. Proper risk control and maintaining rationality are the keys to being a true long-term winner.
Follow Uncle Nan; while I won't promise great wealth, I can assure you steady profits are achievable!
Hesitation leads to missed opportunities, so seize the moment!