Persist in learning and deepen your cognition. I have summarized six valuable experiences and would like to share them with you. I hope that they can inspire your thinking and inspiration.
In the face of a sharp drop in the early trading, do not rush to stop loss. This is often an overreaction to the bad news the night before, and there are often opportunities for repair and reversal in the future. On the contrary, a sharp rise at the end of the trading session should be treated with caution, and be alert to the main funds testing the market or inducing more behavior. The next day may open lower to further absorb funds.
Trading volume, this key indicator cannot be ignored. Changes in volume can reveal the true trend of the market. A shrinking rise means that the main force has strong control over the market; while a shrinking fall indicates that the panic has not been exhausted, the market has not bottomed out, and there is still room for further decline.
It is crucial to master the structural recognition ability of the top of the sector. The sector market often follows the five-wave pattern: the first wave starts to follow the trend, the second wave washes the market and adjusts, the third wave is strong in the main rising wave, the fourth wave is complex and divergent, and the fifth wave is mostly the shipping stage. Among them, the third wave has the most impressive increase, but it needs to be responded to flexibly. Due to the volatility of the market, it is not uncommon for the fifth wave to fail. When the leading stocks in a sector are stagnant and the compensatory rally weakens, it is often a signal of peaking.
Pay attention to the acceleration period of the market top. The sharp rise of altcoins in a certain sector is often a signal that the market is about to reverse. Observe the performance of the major leading coins. If they can stop falling and rebound, the market is expected to rebound in the future.
Focus and single-mindedness are the keys to success for beginners. It is recommended that new investors focus on one trading strategy, study it in depth, and master its essence, rather than learning multiple methods superficially. Only by studying one technique can you avoid market punishment. After stable profits, you can gradually expand your learning field and integrate it.
The operating rules of the trend can be summarized into three basic structures: rising, falling and sideways. In the rising stage, the effectiveness of most technical indicators is enhanced; in the consolidation stage, it is advisable to use support and pressure levels to sell high and buy low; and in the downward trend, most indicators may fail. Therefore, it is necessary to flexibly select appropriate tools and strategies according to the characteristics of different stages of the market, so that you can be confident and deal with it easily.