Many people in the cryptocurrency sphere end up with poor outcomes, mainly due to the weaknesses of human nature, the influence of family and social relationships, cognitive and mindset issues, excessive leverage, lack of regulation, as well as the market's volatility and uncertainty.
I have a friend who has been involved in cryptocurrency trading for eight years. Looking back at the journey, he feels a deep sense of nostalgia. At first, like many people, he had only a vague understanding of virtual currencies and even experienced losses, confusion, and moments of giving up. However, after experiencing market fluctuations, he not only established himself in this field but also successfully earned over 40 million through his own judgment and experience. Now, he has achieved financial freedom, and his parents and children are no longer worried about food and clothing.
However, this path is not simple. He has experienced missed opportunities after surges and anxiety after crashes. Through multiple reflections and summaries, he has slowly refined his investment philosophy and methods. He always says that while trading can earn big money, it relies more on mindset and strategy, especially when facing the market's ups and downs.
Today, he decided to share six practical experiences he has summarized over the years. Although they may sound simple, each one is backed by his real experiences of 'struggling' in the market. I hope these experiences can help everyone avoid detours and prevent falling in the world of virtual currencies.
Rule 1: Identify the trend; the 60-day moving average is my guiding light.
Every time my friend invests, he first checks the '60-day moving average.' He says this line is like a health monitor for the market. If the price of a coin is above the 60-day moving average, it indicates that the overall market is improving. He will choose to increase his position or consider entering. However, if the price falls below the 60-day moving average, he must be particularly cautious, timely stop losses, or adjust strategies. Because this indicator is relatively single-dimensional, but often can effectively judge the general direction of the market, avoiding entering at the wrong time.
Rule 2: Chasing highs is a big taboo; low-position layout is the way to go.
Sometimes, when seeing a certain coin surge by 50%, many people may feel impatient and think of jumping in, fearing they might miss the opportunity. But my friend's principle is: at such times, stay calm and don't rush to chase highs. Because once you enter, it's inevitable to feel anxious, and market fluctuations can make you restless. Instead, he always insists on low-position layout, patiently waiting for opportunities. Through this strategy, he can buy in when prices are relatively low and gain more profits when the market rebounds. This steady and solid approach is one of his keys to success.
Rule 3: There are always signs before a big rise.
My friend often says that before a big rise, there are usually some hidden signals. For example, prices fluctuate within a small range, and the price change typically does not exceed 20%, but trading volume gradually decreases. He always pays attention to these 'quiet periods,' and once he notices these signs, he will gradually buy in at low prices. This way, he can seize the opportunity for an upward movement. After years of practice, he has found that this method has helped him successfully board many rising trains and earn considerable profits.
Rule 4: When a new hotspot appears, react quickly
Whenever a new hotspot appears in the market, trading volume and prices from the previous days will surge. This is when opportunities arise. My friend says that the key to seizing a hotspot is to react quickly and take action while the iron is hot. During such times, he observes the flow of funds to judge the direction of large investments and quickly follows up. Don't wait for the market to stabilize completely before taking action, because by then, everyone else will have already entered, and profits will have already been consumed. He always manages to grasp this timing, making precise entries to capture a share of the market's dividends.
Rule 5: When a bear market comes, be a 'calm observer.'
When entering a bear market, the atmosphere in the market becomes gloomy, and many people start to panic, worrying that the market will continue to decline. However, my friend's approach is to remain calm, stop excessive trading, and even put down his phone to become a 'calm observer.' He believes that the greatest value of a bear market is to preserve strength and avoid making rash moves at inappropriate times. He waits for the right moment and acts when the market warms up, thus reducing risk and ensuring he has enough funds to seize future opportunities.
Rule 6: Regularly review and continuously adjust strategies.
Every week, my friend takes time to review his trading for the week. He not only looks at whether he made a profit or a loss but more importantly examines whether his strategy is effective. He summarizes what he did well in trading and analyzes the reasons for his mistakes. By continuously adjusting and optimizing his strategy, his investment approach has become increasingly mature. In his view, trading is not just blind operations, but a process of continuous learning and optimization; only in this way can one maintain long-term profitability.
Conclusion
He often tells me that success in trading is not easy; it only favors those who are well-prepared and willing to learn and summarize. I hope everyone can gain inspiration from his experience, avoid detours, and earn money steadily! Follow me to avoid unnecessary pitfalls.
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