First, we must protect our principal at all times. No market is worth our gamble. If we lose our principal, no matter how good the market is, it will have nothing to do with us.
Second, control the amount of money you invest. Never borrow money to speculate in cryptocurrencies, and don’t let speculation in cryptocurrencies affect your life.
Third, if you are a short-term trader, then just look at the market sentiment, not complex indicators. The so-called subject matter is storytelling, and the competition is about whose story is more promising and whose pie is bigger.
Fourth, the subject matter needs to be combined with the technical aspects. When good news comes out, we must first look at the shape of the currency to confirm whether the upper lock-in is serious. The rise without good news is the biggest good news, and once the good news is realized, it is time to ship.
Fifth, you must split your positions when trading cryptocurrencies. The market never lacks opportunities, and full positions are very passive, which not only reduces opportunities but also affects your mentality.
Sixth, learn to wait. A qualified cryptocurrency trader must learn to control his hands. When he reaches a certain level, the first thing he should do is to control his hands and not trade just for the sake of trading.
Seventh, the essence of trading is to make money, so you must wait until the buying point of your own model appears before trading. Waiting is also a part of trading. Don’t deny your own model because of one or two mistakes. Nothing is absolute in the world.
Eighth, the formation of a trend is not a matter of one or two days, nor can it be changed in one or two days. Go with the flow. When we eat fish, it is enough to eat only the fish body.