Ordinary people can achieve asset leaps through cryptocurrency trading, but the key lies not in the market trends but in the operational methods.
There are indeed opportunities in the cryptocurrency world, but most losses are not due to misreading the direction, but rather due to chaotic rhythms and lack of discipline.
When the market is in a consolidation phase, the most reasonable choice is to watch and wait.
After consolidation, there is often a directional choice, and intervening before the trend is clear involves taking on uncertainty early.
Participating only after the trend has developed is itself a way to reduce risk.
In short-term trading, popular positions are not suitable for long holds. Capital movement is the core of short-term markets; once the heat declines, prices often fall back quickly. If your reaction is slow, you may be stuck at high levels. Short-term positions need to be switched frequently, rather than held long-term.
When prices rise slowly along the trend and volume increases simultaneously, it indicates that the market is entering a promoting phase. In this case, one should reduce frequent operations and focus on the trend.
However, if a large bullish candle appears with increased volume, regardless of its position, one should consider taking profits. Increased volume often signifies larger discrepancies and a higher probability of corrections, so exiting early is a protection of existing profits.
Buying and selling should revolve around moving averages, support levels, and resistance levels. If a judgment is wrong, adjustments should be made promptly, and if an operational mistake occurs, stop-loss should be executed.
Short-term trading emphasizes execution rather than prediction. The holding period should be controlled within a few days; exceeding this time frame no longer conforms to short-term logic, and one should not participate in subsequent trends.
In the cryptocurrency market, there are some basic principles that need to be repeatedly followed: do not chase after rises, do not buy on declines, and do not move during sideways markets. Many losses do not come from one-sided markets but rather from frequent actions.
Before every purchase, it is essential to clarify the reasons for buying, the operational plan, the response plan for declines, and the handling method for being stuck.
Funds should be used in batches to avoid one-time investments. As long as each transaction has a plan and a response, in the long run, the outcome depends more on discipline rather than luck.
I am Uncle Nan, using the pitfalls I have encountered to help you avoid detours.