I have distilled eight golden rules specifically designed to help retail investors quickly understand the essence of investing. Although brief, every word contains profound meaning, and once understood, they may help you avoid years of twists and turns in your investment journey.
These rules are derived from my years of exploration and practice in the market. Today, I am willing to share them with you, hoping that every reader can extract wisdom from them, lessen the hardships of exploration, and soon write their own glorious chapter in the cryptocurrency world.
1. Skillfully use morning market sentiment: In the morning, market sentiment is at its purest. If prices plummet significantly, don’t panic; this could be a good opportunity to pick up bargains. If the market surges significantly right from the start, don’t be greedy; take the opportunity to secure profits.
2. Manage your strategy for the afternoon: If there is a sudden surge in the afternoon, don’t get carried away and chase after it; most of the time, it’s just a false signal, and high positions are risky. Conversely, if there's a significant drop in the afternoon, you can remain calm, observe for a while, and find the right low point to enter the market the next day, which often allows you to acquire assets at a lower price.
3. Maintain a steady mindset during declines: When you wake up in the morning and see the cryptocurrency price plummeting,
Don't rush to cut losses; the market changes rapidly, and early morning fluctuations are often a distraction. If the market is stagnant and lacks volatility, don't panic; take a break, conserve energy, and wait for opportunities.
4. Strictly adhere to buying and selling principles: If the coin you hold hasn't risen to your expected high, don't sell easily; even a small profit is still a loss. If it hasn't dropped to your psychological price, hold back and don't rush to buy, to avoid buying at the wrong time. During a sideways phase with unclear trends, trading is like a blind person touching an elephant; it’s better to observe from the sidelines.
5. Operate based on bullish and bearish candles: Buy on bearish candles and sell on bullish candles; this is a classic strategy.
Slightly. The appearance of a bearish candle indicates a price pullback, making the assets cheaper; this is precisely
A good time to enter; when a bullish candle appears, it indicates that a short-term upward trend has formed. Sell at a high to secure profits.
6. Use counterintuitive thinking to break through: If you want to stand out in the cryptocurrency world, sometimes you need to go against the grain. When everyone is frantically buying, maintain some calm; when panic selling occurs, be bold, dare to go against the trend, and you may find niche opportunities for wealth outside the mainstream.
7. Endure the agony of consolidation: When prices consolidate for a long time at high or low levels, it can be very trying. During this period, don’t let anxiety lead you to act rashly; maintain your composure and patience, and wait for the trend to clarify whether it will go up or down before launching a full attack.
8. Seize the tail end of a rally: After a long period of sideways movement at a high level, if it surges again, don’t hesitate; this is likely the last frenzy. Sell in time to secure your profits; otherwise, they may vanish, like a cooked duck flying away.
Many people say that short-term trading is speculation.
First and foremost, let me say that short-term trading is not speculation. True short-term trading requires a grasp of certain market operation rules and demands strong skills. It tests both a person's abilities and patience.
1. Establish a clear investment plan. If you want to engage in short-term trading, first set a clear investment strategy for yourself. Determine how much capital to use and what returns you expect each month; these need to be planned according to your risk tolerance.
2. Ensure you have enough time and energy. Intraday trading emphasizes frequent small profits rather than large single profits. Cultivate your own trading principles and habits; don’t place orders just for the sake of it, and don’t let the itch of not trading overwhelm you.
3. Since short-term investments usually involve frequent trading, it is crucial to choose the right cryptocurrencies. Trading must be continuous.
4. When holding a position in profit, close the position once you reach your psychological target; don't aim to capture every last bit. Also, pay attention to position size and leverage, and learn to strictly control your position based on the leverage of the products you are trading and your capital.
5. Use technical indicators: There are countless technical indicators in the market, with at least over a thousand. They each have their focus, and investors cannot master them all; just familiarize yourself with a few. Commonly used indicators include KDJ, RSI, etc.
6. Use moving averages: Short-term trading generally refers to the five-day, ten-day, and twenty-day moving averages. When the five-day moving average crosses above the ten-day and twenty-day moving averages, and the ten-day moving average crosses above the twenty-day, this is known as a golden cross, indicating a buying opportunity. Conversely, when it crosses below, it is called a death cross, indicating a selling opportunity.
7. During rapid fluctuations, try not to make trades.
8. Don’t pay too much attention to others' analyses; everyone has different perspectives. Price trends are influenced by many factors, making all predictions about the future a fifty-fifty chance, partly right and partly wrong. Trust yourself.
Learn to release the burden on your mind; don’t be elated by profits or disheartened by losses. Actively set aside your phone and computer, reduce excessive attention to market trends, and face each trading challenge with a calm and resolute heart.
After six years of trading cryptocurrencies and gaining insights on market trends, I have learned to select mainstream themes wisely. Follow me to hold onto valuable coins at low positions under the backdrop of an upward market trend; victory will ultimately belong to you!