I just had a chat with a senior tycoon in the field of cryptocurrency trading. He told me about his investment experience: he first entered the cryptocurrency circle with 400,000 yuan, lost only 80,000 yuan, and now his assets have exceeded 10 million. He said that the key to helping him change his fate is to persist in learning and continuously improve his cognitive level. The following are five valuable experiences he summarized, hoping to bring some inspiration to everyone!

Don't rush to stop loss in the early morning drop:

Generally speaking, the sharp drop in the early morning is mostly due to the overreaction caused by the bad news the night before. You might as well wait patiently for the market to repair and reverse. However, when there is a big rise at the end of the trading, don't blindly chase the rise, because some main players prefer to test the market or induce investors at the end of the trading, and may open low the next day to absorb funds.

Use trading volume to judge market trends:

Trading volume is a very practical technical indicator. If the trading volume shrinks during the rise, it means that the main force has strong control ability; if the trading volume shrinks during the fall, it means that the panic has not been completely eliminated, and the market may continue to fall.

Learn to understand the top structure of the sector:

The sector market is usually divided into five waves: the first wave is used to attract followers, the second wave is for washing and adjustment, the third wave is the main rising wave, the fourth wave presents a complex divergence trend, and the fifth wave is for lifting and selling. Among them, the increase in the third wave is the most impressive, followed by the first wave, and the fifth wave is the lowest. But the market is unpredictable, and some market conditions may end before the fifth wave is formed. When it is found that the rise of the leading sector has stagnated and the compensatory rise is no longer continuing, it is likely to have reached the top.

Pay attention to the acceleration stage at the top of the market:

Whenever the market accelerates at the top, you will often see a sharp rise in the altcoins of a certain sector, which may cause the market to reverse and turn around. Just observe whether the performance of the major leading currencies has stopped falling and rebounded, and the index may also rebound in the future.

Focus on studying one strategy:

For novices who are new to investment, focusing on studying one trading strategy is more ideal than learning multiple strategies at the same time. Greedy and easy to lose, not good at learning is very easy to be taught a lesson by the market. Do not switch modes at will, calm down and study hard. After achieving stable profits, you can learn more skills to achieve a thorough understanding.

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