Some insights from my experiences in the crypto world, dedicated to friends who are new to the space:
Don’t get too attached to hot coins; take profits from altcoins in a timely manner. Don’t always think about riding the wave from start to finish, as that often ends up being in vain.
The reasoning is simple: altcoins cannot keep rising indefinitely. After a surge of popularity, it’s usually time to switch; otherwise, you’ll fall back to where you started, having worked hard for nothing. FIL and LUNA are prime examples.
If the price is consolidating at a high level before making another push, be prepared to run; if it’s consolidating at a low level and making new lows, it could be an opportunity. If the price makes a new high after consolidating at a high level, be wary of the main force trying to lure you in; if it's time to reduce your position or exit, don’t hesitate. If the price makes a new low after consolidating at a low level but quickly rebounds, it’s likely the main force is washing out the last weak hands, so maintain your composure.
Observe the environment and discern strength and weakness. When the overall market is not performing well, coins that are consolidating against the trend may rise; those that are slightly rising against the trend might see significant gains. When the market is hot, coins that are consolidating against the trend may see slight declines, while those that are slightly declining against the trend might experience significant drops.
Only increase your position when making profits; don’t stubbornly hold onto losing positions (averaging down). This may break many people’s perceptions. Your position should increase when the coin price breaks above previous highs, not when it keeps falling. Averaging down when the price drops only leads to more losses, eventually leaving you immobilized. Remember: cut your losses and let your profits run.
Once the bottom is confirmed, patiently await surprises. Once the bottom price is confirmed, the upward movement often follows a “two steps forward, one step back” rhythm, so don’t easily doubt it. Especially during a trending upward movement, as the main force pushes up while washing out positions, don’t be easily shaken off the ride.
Look at sectors before looking at coins. Top players first analyze sectors (hot sectors with high popularity tend to have higher win rates), second-tier players only look at individual coins, third-tier players only focus on technical indicators, and bottom-tier players are merely gambling. Before buying a coin, the heat of the sector is an important consideration.
Volume and price are the foundation of indicators. Indicators are determined by volume and price, so true technical analysis requires examining volume and price action. Price increases need real capital to drive them. Ignoring volume and price while only relying on indicators will surely cause you headaches.
Different trends have different focal points. In an upward trend, look for support (pullbacks to support present buying opportunities), while in a downward trend, look for resistance (rebounds to resistance present shorting or exit opportunities). #RWA热潮 #币圈
Don’t get too attached to hot coins; take profits from altcoins in a timely manner. Don’t always think about riding the wave from start to finish, as that often ends up being in vain.
The reasoning is simple: altcoins cannot keep rising indefinitely. After a surge of popularity, it’s usually time to switch; otherwise, you’ll fall back to where you started, having worked hard for nothing. FIL and LUNA are prime examples.
If the price is consolidating at a high level before making another push, be prepared to run; if it’s consolidating at a low level and making new lows, it could be an opportunity. If the price makes a new high after consolidating at a high level, be wary of the main force trying to lure you in; if it's time to reduce your position or exit, don’t hesitate. If the price makes a new low after consolidating at a low level but quickly rebounds, it’s likely the main force is washing out the last weak hands, so maintain your composure.
Observe the environment and discern strength and weakness. When the overall market is not performing well, coins that are consolidating against the trend may rise; those that are slightly rising against the trend might see significant gains. When the market is hot, coins that are consolidating against the trend may see slight declines, while those that are slightly declining against the trend might experience significant drops.
Only increase your position when making profits; don’t stubbornly hold onto losing positions (averaging down). This may break many people’s perceptions. Your position should increase when the coin price breaks above previous highs, not when it keeps falling. Averaging down when the price drops only leads to more losses, eventually leaving you immobilized. Remember: cut your losses and let your profits run.
Once the bottom is confirmed, patiently await surprises. Once the bottom price is confirmed, the upward movement often follows a “two steps forward, one step back” rhythm, so don’t easily doubt it. Especially during a trending upward movement, as the main force pushes up while washing out positions, don’t be easily shaken off the ride.
Look at sectors before looking at coins. Top players first analyze sectors (hot sectors with high popularity tend to have higher win rates), second-tier players only look at individual coins, third-tier players only focus on technical indicators, and bottom-tier players are merely gambling. Before buying a coin, the heat of the sector is an important consideration.
Volume and price are the foundation of indicators. Indicators are determined by volume and price, so true technical analysis requires examining volume and price action. Price increases need real capital to drive them. Ignoring volume and price while only relying on indicators will surely cause you headaches.
Different trends have different focal points. In an upward trend, look for support (pullbacks to support present buying opportunities), while in a downward trend, look for resistance (rebounds to resistance present shorting or exit opportunities). #RWA热潮 #币圈