In the fast-paced world of cryptocurrency trading, there’s one approach that could drain your profits quickly if you're not cautious. To avoid falling into this trap, there are three golden rules every trader must follow. First and foremost, never buy into a rising market. The key to successful trading is adopting the mindset: "be greedy when others are fearful, and fearful when others are greedy." This means you should develop the habit of buying when prices dip. Secondly, never suppress orders—letting the market flow naturally can prevent forced trades that backfire. Lastly, never go all-in with your investment capital. Being fully invested leaves no room for flexibility, and in a market overflowing with opportunities, the cost of missing out on better prospects can be high.
Moving on, there are six key strategies for short-term trading that can guide you towards better profitability. First, after a currency consolidates at a high, it often pushes to a new high, and likewise, after a low consolidation, it usually falls to a new low. Wait for the market's direction to become clear before acting. Second, avoid trading during sideways movement. Many traders lose money because they can’t resist trading in this no-man’s-land. Third, when looking at daily K-lines, buy during dips and sell during peaks to capture optimal profits. Fourth, when a decline slows, expect a slower rebound, but if the decline accelerates, the rebound will too. Fifth, follow a pyramid-buying strategy, slowly building your position over time—this is the cornerstone of value investing. Finally, after significant price movement in either direction, expect the market to consolidate sideways.
By sticking to these principles, you’ll be better positioned to take advantage of market conditions and avoid costly mistakes. Stick around, and we’ll dive deeper into advanced strategies in future updates..
