After battling in the volatile cryptocurrency world for nine years, I have been fortunate to achieve an astonishing profit of 70 million. This trading journey resembles a thrilling adventure, with difficulties and challenges arriving one after another. Through countless practical trials and tribulations, I have carefully summarized six invaluable practical tips. These experiences are concise and highly practical, and today I wish to share them unreservedly with my fellow colleagues in the cryptocurrency circle, hoping that they can illuminate a bright light on the thorny path of trading, guiding everyone to avoid numerous obstacles and detours!
1. Skillfully use the 60-day moving average to judge trends:
In the vast ocean of numerous cryptocurrencies, one must cultivate a keen eye to precisely identify those vigorous and rapidly rising tokens. When feeling lost in trading decisions, as if shrouded in fog, the 60-day moving average serves as a bright lighthouse guiding our path forward. Closely observe the direction of the target cryptocurrency's 60-day moving average; if it stands proudly above the price like a strong fortress, it usually indicates that the cryptocurrency is currently in a powerful upward trend, making it an excellent time to increase positions or buy decisively. Conversely, if the 60-day moving average suddenly slips below the price, sounding a dangerous alarm, it undoubtedly warns us that the upward trend may soon halt, with a storm of downward price reversal approaching. At this moment, we must act decisively, retreating from the market with lightning speed to avoid falling into a bottomless pit of losses. Through long-term practical experience, this method has proven effective, serving as a precise navigational tool in most complex and variable market situations, helping us appropriately seize buying and selling opportunities to achieve profit targets or effectively manage risks.
2. Do not chase rapidly rising cryptocurrencies:
When a cryptocurrency soars like a rocket, breaking through a 50% increase in a short time, the hidden risks behind it are ever-present. At this moment, it is crucial to restrain the greed that grows wildly within, and not to be deceived by the seemingly enticing upward trend, blindly following the rise. One must understand that after such a rapid rise, market sentiment is like boiling water—extremely excited and unstable, with price movements resembling a wild horse that has lost its reins, prone to significant reversals. If one rashly chases high prices, they will find themselves in a passive predicament, as if walking on a precarious tightrope, constantly anxious. In contrast, waiting patiently for a price correction to a relatively low level, much like waiting for the right moment to strike, and then buying calmly is a wiser and steadier investment strategy. This approach not only significantly reduces investment risks, like building a solid defense for capital, but from a long-term perspective, the profit potential from buying at low levels is often vast, with the ultimate profits likely far exceeding those from chasing highs.
3. Insight into unusual movements before a big rise:
Before every round of tumultuous surges, there will always be a few imperceptible 'mystery codes' left behind like agile spirits in the subtle corners of the market. Generally, we will catch a glimpse of a cryptocurrency's price seemingly being gently manipulated by an invisible hand, beginning to show a gentle and slight fluctuation, with price changes carefully measured to remain roughly between 10% and 20%. At the same time, a crucial signal quietly emerges—the trading volume gradually shrinks like the receding tide. This period resembles the moment of tranquility before a storm, containing a significant investment opportunity that can change one's fate. At this moment, we must maintain an icy calm mind and an eagle-like sharp insight, steadily buying in batches within the subtle range of low-price fluctuations. By doing so, it is as if holding the golden key to unlock the treasure of wealth, greatly increasing the likelihood of successfully laying out a scheme before the market erupts like a volcano, ensuring a smooth ride on this fast track to the pinnacle of wealth, relishing the unparalleled joy and glory brought by abundant profits.
4. Closely follow the early trends of hot topics:
Market hot topics resemble dazzling meteors that pierce through the darkness of the night sky; although brilliant, they are fleeting. Whenever a brand new hot topic suddenly appears in the vast starry sky of the market, it invariably triggers a surge of capital pursuit akin to a roaring tsunami within the initial days, with enthusiasm soaring like a raging fire. In this critical golden period, for us investors, it is as if standing at the pinnacle of the wealth wave that determines our fate. Whether we can capture this fleeting opportunity with lightning speed and act decisively without hesitation directly affects our ability to reap substantial profits. Our only task is to closely follow the direction of large capital flows, as their movements represent the leading flagship of the market, reflecting the mainstream trends and strongest driving forces. Once we detect that large capital is flooding into a cryptocurrency related to a hot topic, we must swiftly follow suit with the speed of a cheetah pouncing on its prey, leveraging the powerful tailwind of the hot topic and the overwhelming force of large capital to effortlessly achieve profit targets, successfully securing a share of the sweet rewards in this fierce and brutal wealth battle.
5. Bear market lurking and waiting for opportunities:
The bear market, for cryptocurrency traders, is like a long and bitterly cold winter night, filled with suffocating unknown fears and numerous dangers. Under the shadow of the bear market, the overall market trend seems to fall into an unfathomable ice cellar, remaining persistently sluggish, with prices plummeting like a kite with a broken string. Investor confidence is shattered like glass, suffering devastating blows, and the trading environment is as harsh as a wilderness full of thorns. At this time, the wisest choice is not to blindly trade frequently like a headless fly, trying to find elusive opportunities in adversity, but to be like a wise man in hibernation, restraining the impulsive trading urge that resembles a runaway wild horse, waiting with extraordinary patience. For at least half a year, we should avoid all unnecessary trading operations, allowing our capital to rest like a ship in a tranquil harbor, fully recuperating and letting our mindset restore its previous calm and stability, as if brushed by the spring breeze. Because, in the backdrop of a sluggish bear market, excessive turmoil often leads to more losses and heavy psychological pressure, while only those investors who master the art of timely rest and skillfully preserve their strength can truly grasp the essence of investment art and withstand the long cold nights of the bear market, waiting for the next bull market's hope and opportunities to dawn like the morning light.
6. Regularly review strategies:
Trading cryptocurrencies is far from a simple and easy game; it is a long marathon journey requiring persistent learning and ceaseless evolution. Therefore, each week we must devote a quiet moment, like devoted practitioners, to conduct a comprehensive, in-depth, and meticulous review and reflection on our trading operations from the past week. In this sacred process of review, the focus is not merely limited to the cold surface changes in account profits and losses, but should delve deeper, like a skilled surgeon analyzing whether the strategies used in each trade are correct, reasonable, and just right. If, after careful analysis, we discover that a certain trading strategy has been successfully validated in the fierce fires of practical experience, we should steadfastly continue to uphold this strategy, refining it into a brilliant gem within our core trading strategy system; conversely, if we unfortunately find that a strategy has led to repeated trading mistakes or unsatisfactory results, we must muster the courage and determination to make timely adjustments or even completely abandon it. Through this continuous cycle of regular review and strategy optimization, after months of accumulation and sedimentation, our trading skills will naturally become increasingly stable and proficient, like a phoenix reborn from the ashes. When faced with the various complex and unpredictable situations in the market, we will be able to make more accurate and wise trading decisions, ultimately achieving long-term stable and remarkable profit results in this mysterious and boundless market of possibilities.
Please remember that in this mysterious realm of opportunities and challenges in cryptocurrency trading, opportunities never drop from the sky like a free lunch; they are like precious rare treasures, favoring only those well-prepared, with keen insights and rich practical experience. Success is never a fleeting moment of luck, but rather the result of enduring countless arduous trials and deep sedimentation, blooming as brilliantly as a flourishing flower.