$RAVE There is a very simple yet effective method for trading cryptocurrencies. Though it may not lead to overnight wealth, it can ensure steady profits, allowing you to learn while you work and gradually become proficient.
First, let's discuss three things that must not be done when trading cryptocurrencies:
First: Never place all your bets.
Placing all your bets is like gambling on high or low; the risk is too great. Trading cryptocurrencies is meant for making money, not risking your life, so never do it.
Second: Don't follow the crowd to buy when the price is rising rapidly.
Remember this: be bold when others are scared, and be cautious when others are greedy.
Develop a habit of buying when prices are falling; at this time, everyone else is panicking, and you need to seize the opportunity.
Third: Never go all in.
Once you go all in, you become passive. There are plenty of opportunities in the market, and you don’t 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.
Here are six mantras for short-term cryptocurrency trading that, if remembered, can save you from many detours:
One: After the price consolidates at a high level, it often pushes up again, creating a new high;
After consolidating at a low level, it is likely to drop again, creating a new low.
Therefore, we should wait until the direction of the change is clear before taking action; don’t rush to place bets.
Two: When choosing candlesticks, buy when a bearish candle closes and sell when a bullish candle closes.
This trick is simple but quite effective; it can help us seize many opportunities.
Three: Don’t trade recklessly during consolidation.
Many people lose money in cryptocurrency trading simply because they can't control themselves and fumble around during consolidation.
We need to stay steady and wait for the market to clarify before taking action.
Four: When the speed of decline slows down, rebounds will also be gradual;
When the speed of decline accelerates, rebounds will be quite fierce.
We need to adjust our trading strategy according to this pattern.
Five: After a cryptocurrency rises or falls continuously, it will definitely enter a consolidation phase.
At this time, don’t rush to sell everything or buy everything because a change will surely occur after consolidation.
If it changes down from a high position, we need to quickly liquidate;
If it changes up from a low position, we should gradually accumulate.
In any case, we need to remain flexible and not be stubborn.
Six: When building a position, use the pyramid method.
This is a fundamental rule in value investing, and following it will definitely yield results.
