Major news in the cryptocurrency market is often accompanied by the arrival of major market trends. After all, cryptocurrency trading is not gambling and requires clear thinking. Xia Sen summarizes the five major trading skills for cryptocurrency investment here, hoping to be helpful to everyone.
Step 1: Recognize the trend
Going with the trend is the winning magic weapon for any investment and financial management, so the first step is to "recognize the trend". Trend is a medium- to long-term concept, representing the direction of price changes over a long period of time, including rising, falling, and consolidation. Therefore, it is very safe to use the traditional operation method of "selling high and buying low" after identifying the trend. If you want to "chase the rise and sell the fall" against the market, you must focus on short-term operations.
The second trick: Wait for the buying point
"Waiting for the buying point" is the second trick that must be mastered. Investors can use several methods such as the golden section method and the trend line buying method to achieve this. There is no difference between different methods, only whether they are suitable and whether they are convenient for investors to operate.
Step 3: Find your target
"Finding a target" is the third trick. Investors can also use the golden section method to achieve it. A target is just a target, which may not be achieved or may be exceeded. It is not advisable to stick to the target. The key lies in the choice after achieving the target, whether to close the position or hold the position? This depends on the "trend".
Tip 4: Stop Profit and Stop Loss
The fourth move, "stop profit" and "stop loss", are actually two moves, but these two moves are inseparable and complementary, so they can be regarded as one move. It is very important for investors to formulate stop profit and stop loss strategies. "Why stop profit?" Although it is a bit difficult for investors with a strong mentality to do this, it is the only way to maximize your profits in a unilateral trend. If you do not use the stop profit method, the market will suddenly change, and you will pay a high cost, or even lose a round of big market. The determination of the stop profit price should be constantly moved up or down with price fluctuations. In the process of rising, the previous day's closing price is used as a reference. In the consolidation trend, stop profit should be used less and positions should be closed actively.
Stop loss at the first opportunity is a test for investors. When the price falls to the set stop loss point, stop loss should be made in time. Which support level should the stop loss be set at? What is the appropriate stop loss amount? It is best to set the stop loss based on your own feelings and understanding of the market. In medium and long-term transactions, stop loss is not measured by how many points are appropriate, but by the importance of support.
The fifth move: Avoid being greedy and timid
Prices are constantly changing. Investors cannot draw the trajectory of future price changes in advance. They can only make predictions based on historical data and certain methods. However, no matter how rigorous the analysis and predictions are, they may be wrong. Therefore, it is necessary to establish a correct thinking mode and maintain a good mentality. Avoid "greed": keep your own profits; avoid "timidity": dare to win.
The first principle of investment is to avoid risks. If you cannot avoid risks, no matter how much money you make, you will have to pay it back one day. Everyone has his own way to success, and investment transactions must also have their own principles. Accumulating small amounts into large amounts and taking small risks for big gains are the fundamentals of trading. However, many people have forgotten their original intentions, and put the benefits in front of them, but put the risks on the wall. They don’t know how fragile and insignificant individuals are in the market. If you don’t know how to avoid risks, you are like a small boat sailing on the sea, which can be overturned by wind and waves at any time. #币安合约锦标赛 $BTC
