Share that making money in the cryptocurrency circle relies on professional trading skills, which require basic skills in 5 dimensions:
1. Trend selection, 2. Coin selection, 3. Timing, 4. Profit-taking, 5. Position management
Trend Selection: The importance of trends is self-evident; finding the right trend and following the big direction is crucial. As the saying goes, even pigs can fly on the wind, the trend of cryptocurrencies is quite obvious, with halving occurring every four years leading to cyclical trends, compounded by the monetary policy factors of the Federal Reserve. Understanding these two aspects and choosing a trend that benefits your trading makes grasping the big direction effortless.
Coin Selection:
Regarding the method of selecting coins, one can explore by observing the fundamental information of the coin, traces of institutional accumulation, the strength and weakness of coin prices, as well as technological evolution, emotional evolution, narrative development, and other methods.
Timing: Once you have selected your desired token, you need to observe the market to find the right entry timing. This step is also crucial; good coins are often available, but good entry opportunities require professional data support to buy in. A lower entry price and appropriate timing not only help maintain a calm mindset amidst significant volatility but also maximize profits.
Profit-Taking: Profit-taking is often difficult to do precisely. I commonly use the method of taking profits in batches, leaving 10% of the position, which allows me to accept market emotional fluctuations, both crashes and surges.
Finally, the most important thing is position management. This step is almost related to the lifespan of your investments in cryptocurrency. If done poorly, it is basically impossible to achieve sustained stable profits. You can adopt the principle of scaling in with a 334 strategy, or a 136 principle. The core is to control the position to manage mindset and emotions.
When you find the opportunity to take a 30% position in a certain coin, you won't be hoping for it to skyrocket; instead, you'll think about buying more if it pulls back. If you start with a full 100% position, a pullback will affect your mindset.
If it then surges directly, having a 30% position means you have no psychological pressure. You can attack when the opportunity arises and defend when necessary. Only then can you maintain a calm mindset for trading.
The cryptocurrency circle is not short of opportunities; what is lacking is your clear mind when facing opportunities and risks.