There is a very foolish method for trading cryptocurrencies, but this method can almost consume all profits, so learn slowly. First, when trading cryptocurrencies, you should never do three things.
The first thing is to never buy in when the price is rising; be greedy when others are fearful and fearful when others are greedy. Get into the habit of buying when prices are falling.
The second is to never place large orders.
The third is to never go all-in; being all-in makes you very passive, and the market is never short of opportunities. The opportunity cost of being all-in can be very high.
Now, let's talk about the six rules for short-term trading.
The first rule is that after the price consolidates at a high level, it usually reaches a new high. Conversely, after it consolidates at a low level, it typically reaches a new low. So wait for the direction of the trend to become clear before making your move.
The second rule is to avoid trading during sideways movements; most people lose money in cryptocurrency trading because they can't adhere to this simplest point.
The third rule is when choosing candlesticks, buy when the daily line closes with a bearish candle and sell when it closes with a bullish candle.
The fourth rule is that when the downtrend slows, the rebound is also slow; when the downtrend accelerates, the rebound will be stronger.
The fifth rule is to build positions using the pyramid buying method; this is the only unchanging principle of value investing.
The sixth rule is that when a cryptocurrency continuously rises, after a sustained decline, it will inevitably enter a sideways state. At this point, you don't need to sell everything at a high price, nor is it necessary to buy everything at a low price. Because after consolidating, it will inevitably face a trend change. If the trend changes downward from a high position, you need to clear your positions in time; in short, you need to act promptly.
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After struggling in the cryptocurrency world for a full 7 years, from an initial capital of 100,000 to now achieving financial freedom.
Along the way, I have experienced three cycles of bull and bear markets, and I have almost stepped into all the pitfalls, but it is these experiences that have allowed me to develop my own stable profit system.
First step: Add cryptocurrencies that have risen in the ranking within 11 days to your watchlist, but note that any cryptocurrencies that have fallen for more than three days should be excluded to avoid capital escape after profit.
Second step: Open the candlestick chart and only look at cryptocurrencies with a monthly MACD golden cross.
Third step: Open the daily candlestick chart, here only look at a 60-day moving average; as long as the price retraces near the 60-day moving average and a volume candlestick appears, then enter the market with a large position.
Fourth step: After entering the market, use the 60-day moving average as the standard; if it is above, hold; if it is below, exit and sell. This is divided into three details.
The first is when the segment increase exceeds 30%, sell one-third.
The second is when the segment increase exceeds 50%, sell another one-third.
The third is the most important, and it is the core that determines whether you can make a profit, which is if you buy on that day and the next day an unexpected situation occurs where the price directly breaks below the 60-day moving average, then you must exit completely, without any luck mentality. Although the probability of breaking below the 60-day moving average through this method of selecting cryptocurrencies based on the monthly and daily lines is very small, we still need to have risk awareness.
In the cryptocurrency world, the most important thing is to protect your capital. However, even if you have already sold, you can wait until it meets the buying criteria again to buy back.
So, finding your own set of money-making theories is the golden key to stable income; treat others' experiences as fertilizer, as a reference standard for determining whether your own theory is feasible.
Grasping market trends accurately, enjoying profits is so smooth!
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魏老师
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Bearish
Public Challenge Across the Entire Network (Welfare orders made public for everyone)
Big Cake 108138 enters 🈳
The market has been rising all the way, breaking new highs again! After harvesting profits from long positions, decisively take short positions at high levels.
Public Challenge Across the Entire Network (Welfare orders made public for everyone)
Big Cake 108138 enters 🈳
The market has been rising all the way, breaking new highs again! After harvesting profits from long positions, decisively take short positions at high levels.
The pancake has reached a new high! Should we decisively chase the bull or short at a high position? Brothers who aren't sure about the points, let's communicate and take off together.
When making contracts, it's better not to enter trades that you're not sure about! Be patient and wait for the market to pull back before continuing to chase the bulls!
The Easiest Way to Make Money from Cryptocurrency Trading
Trading cryptocurrencies is not an easy task, but once you master the tricks, making money becomes as natural as drinking water. Here are some rules for making money in a bull market, remember them well!
1. Upward trends are hard to resist: Once an upward trend starts, it often doesn't end easily. Therefore, don't panic in the face of potential large pullbacks, and be brave enough to enter the market. However, be careful not to blindly chase lower points; otherwise, you may miss out completely.
2. Bull markets have many fluctuations; positions should be flexible: In a bull market, the market often experiences rapid fluctuations. If your position isn't fully allocated, patiently wait for a suitable pullback opportunity, then decisively increase your position. But remember, avoid frequent trading to prevent impacting your mindset and returns.
3. Diversify investments to reduce risk: When trading cryptocurrencies, it's best to spread your funds across multiple key sectors. This can prevent the overall return from being affected by a particular sector's short-term inactivity. Of course, allocate funds reasonably based on your risk tolerance and market conditions.
4. Hold firmly and wait for rotation: Once you decide to buy a certain cryptocurrency, hold it firmly and don’t be easily swayed by the market's short-term fluctuations. In a bull market, every cryptocurrency has the opportunity to rotate; as long as you hold on, there will always be chances to gain profits.
5. Market divergence is an opportunity: When there is divergence in the market, it often harbors opportunities. A cryptocurrency that many people criticize may actually be a potential investment opportunity. Conversely, when everyone is optimistic, it might signal an impending risk.
6. Avoid short-term trading: When trading cryptocurrencies, try not to frequently engage in short-term high sell-low buy operations. Because once you exit midway, you might find that you can never get back in. In contrast, long-term holding often yields more stable returns.
7. Stay calm and patiently wait: In a bull market, pullbacks are inevitable. However, as long as you hold on and do not hold garbage coins, even the worst cryptocurrencies can yield five to ten times returns in a bull market. Therefore, stay calm and patiently wait for the market's rotation.