One move from 200,000 to 10 million! This simplest cryptocurrency trading method, 11 trading insights that anyone can use.
In the cryptocurrency space, where opportunities and risks coexist, some have achieved financial freedom while others have lost all their investments.
As a senior in the market said, the secret to trading lies in simplicity; mastering one method to perfection is the path to survival and profit. Two years ago, I met this senior in Shanghai.
He has steadily gained tens of millions in returns from the cryptocurrency space using the simplest method. He emphasizes 'the great way is simple' and warns us that complex thinking and excessive worry can hinder accurate judgment, and those who incur losses often entangle themselves in this way.
Below are a few classic sayings he shared at the time. Although they seem plain and unadorned, they contain profound market wisdom. Mastering these key points can at least allow one to make some small profits, if not achieve huge gains. Here is the content shared by this senior; we might as well deeply understand and apply it in due time.
1. Observe high and low consolidations.
When the market is at a high or low horizontal consolidation phase, remaining observant is a more cautious strategy. The appearance of horizontal consolidation is often a precursor to a change in direction; after digesting prior fluctuations, the market will ultimately choose a clear direction. At this time, acting rashly may lead to unnecessary losses. It is wiser to wait for the market to clarify and then act in accordance with the trend. The senior has repeatedly reminded us, 'During consolidation, observation is more valuable than blind trading.'
2. Do not linger on hot positions; adjust positions according to the market.
In short-term operations, popular positions are often the result of speculation. Once the heat dissipates, funds will quickly exit, leaving investors trapped. Therefore, the senior suggested not to linger too long on popular positions but to adjust flexibly and always maintain agility. As he said, 'Short-term popular positions come quickly and leave quickly; a little carelessness can lead to chasing rises and killing falls. Successful short-term operations are not about blindly following the trend, but about maintaining clarity at all times, achieving from start to finish, and ending up with nothing.'
3. A rising trend with a gap up requires firm holding.
If during a rising trend, a bullish candlestick with a gap up appears and is accompanied by increased volume, it indicates that the market has entered an accelerated upward phase. At this time, one should remain composed and firmly hold the position, as such situations often lead to a significant rise. The senior referred to it as the 'acceleration period,' emphasizing the need to maintain strong beliefs during this phase and not be swayed by short-term fluctuations, as this is how to achieve substantial profits.
4. Large bullish candlesticks require decisive exit.
Whether the market is at a high or low position, the appearance of a large bullish candlestick is always a signal to exit. In such cases, even if one sees a price limit rise, one must decisively close the position, because in most cases, large bullish candlesticks are followed by pullbacks. The senior told us, 'No matter how tempting the profit is, taking it when the opportunity arises and decisively closing your position is key to avoiding profit retracement.' The core of this strategy lies in 'knowing when to enter and exit'; one must guard against risks and control profit pullbacks in any situation.
5. Buy on bearish candlesticks above the moving average, sell on bullish candlesticks below the moving average.
Moving averages are one of the key references for short-term trading. If the stock price is above an important moving average and there is a bearish candlestick pullback, it is a suitable buy signal; conversely, a bullish candlestick below the moving average may indicate weak upward momentum, suitable for selling. In short-term investments, one generally only focuses on daily moving averages or attack lines and should avoid dragging on too long. The senior reminded, 'No more than a week; act within three days, and don’t linger when opportunities are missed.' Short-term trading emphasizes speed and precision; holding for too long increases risk.
6. Don't sell on spikes, don't buy on crashes, and stay still during sideways movements.
In the cryptocurrency space, the market fluctuates frequently, and this principle is considered a basic survival rule. If the current price is not significantly above the buying price, one should not sell easily; conversely, if there is no significant drop, one should not rush to buy. When the market is in a sideways state, remaining observant is more prudent. The senior referred to this as 'stability first'; any hasty trade could lead to losses. Long-term profitability does not rely on frequent entries and exits, but on reasonable timing for entering and exiting.
7. Better to invest less than to invest more; act within your means.
In the cryptocurrency space, ensuring flexibility is key. Even if there is great certainty, it is unwise to invest a large amount of funds at once; reasonable position allocation is particularly important. The senior reminded us, 'Better to invest less than to be too greedy,' because the market can experience unexpected fluctuations at any time, and diversifying funds can reduce the risk of a single investment. For each trade, a rational position ratio should be established, so one is not caught off guard by sudden market movements.
8. Learn to interpret market news.
In the cryptocurrency space, the influence of information cannot be underestimated. Market news often directly triggers significant price fluctuations, which can be sharp rises or falls. Therefore, investors should learn to interpret market information, especially major events and policies. The senior suggested that beginners should remain observant when encountering major news, as excessive intervention may lead to unnecessary losses.
9. Master technical indicator analysis.
Technical analysis plays an important role in the cryptocurrency space. Seniors advise that beginners should systematically study technical indicators, formulate a learning plan, and master analysis tools such as moving averages, KDJ, Bollinger Bands, candlestick patterns, volume-price relationships, and capital flow. Technical analysis requires long-term accumulation and is not achieved overnight. Mastering technical analysis can help investors identify buy and sell points, reducing unnecessary losses.
10. Formulate a trading plan to avoid frequent trading.
Frequent trading not only incurs high transaction fees but also disrupts the trading mindset, leading to emotional trading. The senior emphasized, 'Trading requires planning; it cannot be blind and arbitrary.' In the cryptocurrency space, frequent entries and exits often mean greater uncertainty. An effective trading plan can help investors maintain rationality and clarity.
11. Ensure good risk control, set stop-loss and take-profit points.
Before each trade, set reasonable stop-loss and take-profit points to keep risks within acceptable limits. When the stop-loss or take-profit point is reached, one should decisively exit rather than greedily pursue further profits. The price fluctuations in the cryptocurrency space are drastic, and the senior's experience tells us, 'Reasonable stop-loss and take-profit are the keys to successful trading.' Even experienced investors cannot accurately predict the market, so comprehensive risk control measures are essential for every investor.
Trading cryptocurrency is not something that can be achieved overnight, nor is it sustainable profit through luck and following trends. The senior's experience tells us that success lies in rationality and patience.
The great way is simple, the key lies in finding a method that suits oneself, sticking to principles, and practicing repeatedly, rather than chasing temporary trends and quick profits. Stable profits come from a balanced mindset, risk control, and a deep understanding of the market.
The senior taught, 'Less is more, simplicity is essence.' In the market, excessive trading and frequent judgments can weaken profit opportunities. Investors must remain calm when facing the market, truly grasp the essence of 'Dao,' to respond calmly to the changes in the cryptocurrency space. Let us encourage each other in this regard.
Timing is more important than effort, as the saying goes, 'When the time comes, the world works together; when the opportunity is gone, heroes are not free.' The core of the market is information, accurate information! Only high-quality primary signal sources can ensure a foothold in the market.