The rules for success in full-time cryptocurrency trading—this set of trading secrets will save you 10 years of detours! From 100,000 to 10 million, I have summarized 8 practical principles.
1. Do not become attached to hot coins. When the profit from altcoins reaches a certain level, it’s time to exchange. Trying to ride a coin from start to finish is bound to end in failure. The reasoning is simple: altcoins cannot rise indefinitely. When they peak, you must exchange; otherwise, you will fall back to where you started, wasting your efforts, like FIL and LUNA from years ago.
2. If a coin price consolidates at a high level before making a new high, be ready to sell; if it consolidates at a low level and makes a new low, a good opportunity is likely to arise. When the coin price makes a new high after consolidating at a high level, be wary of the main force inducing buying. Do not hesitate to reduce your position or exit. Conversely, if the coin price makes a new low after consolidating at a low level and quickly rebounds, it is likely the main force is making a final wash, so remain firm.
3. When the market environment is poor, coin prices may rise against the trend; small increases can lead to large gains. When the market environment is good, coin prices may fall against the trend; small declines can lead to large losses.
4. Increase your investment only when making a profit, do not average down when losing. This may break the understanding of many experienced traders. Our positions should be increased when the coin price breaks through previous highs, rather than averaging down during continuous declines. Averaging down only leads to larger losses, making it impossible to act. You must cut losses and let profits run.
5. As long as you are sure of the bottom price, there will generally be a rise of two steps forward and one step back. At this time, do not doubt it; usually, a big surprise follows. Especially during a trending rise, the market often rises while washing out positions, so do not get off the bus easily.
6. Top traders first look at sectors, second-rate traders only look at individual coins, third-rate traders look at indicators, while the lowest tier only gambles. This means that when we want to buy a certain coin, we must first look at the sector. Only by focusing on hot sectors can we achieve high popularity and win rates. Next, we look at the tokens. Relying solely on indicators means you are a novice, while looking at everything means you are a gambler.
7. The indicators change with price and volume, so price and volume are the sources of indicators. If you don't look at price and volume while relying on indicators, trading cryptocurrencies will lead to trouble. Indicators are calculated based on coin prices and trading volumes, so true technical analysis requires looking at volume and price. Price increases require a large amount of funds to drive them.
8. In an upward trend, look for support; in a downward trend, look for resistance. When the coin price is in an upward trend, operating based on support lines has a high success rate, providing opportunities for buying on dips. In a downward trend, operating based on resistance lines has a high chance of success, allowing for short positions or exit opportunities.
The market changes every day, so you must seize the right moment to act. If you feel lost, you can click on my profile and follow me. I usually share some cutting-edge information and practical strategies to seize great opportunities together! One tree cannot make a forest, and a lone sail cannot travel far! In the cryptocurrency world, if you do not have a good circle and insider information, I suggest you follow me to help you succeed. Welcome aboard!