In the crypto circle, what is the secret to successful trading? Is it looking at K-line charts more, or understanding news faster? Actually, these are not enough. Trading is more like a psychological battle: steady hands and calm mind mean you have already won half; the remaining half relies on a bit of strategy and great wisdom. Today, let’s delve into the secret weapons of trading experts—'The ten principles of crypto trading'.
1. Entering the market should have a sense of ceremony: don't act until the timing is right.
Experts never rush into the battlefield casually. They adhere to a strict rule:
• When shorting, if the price doesn’t rise, stay put;
• When going long, if there's no sudden drop, quietly wait for the opportunity.
Deep meaning: Just like fishing, if the water hasn’t stirred up, the fish won't come to the surface. Randomly casting nets will only waste your efforts.
2. Exiting is an art: withdraw when necessary, don’t be greedy for achievements.
Does the price start to rebound when it hits a new low? This tells you: the task of short positions is completed, it's time to withdraw!
Price rises and then falls? If you don't exit your long position, are you waiting to 'fall from heaven to the basement'?
Deep meaning: Don't see yourself as the protagonist; the market won't change because of your obsession. Knowing when to exit means keeping the fruits of victory.
3. Sideways trading is like a foggy forest; don’t easily get lost.
When the price is sideways, direction unclear, experts will never act rashly. Why?
Because stepping into the 'sideways and volatile' quagmire, you will become the market's ATM.
Deep meaning: Be patient like a hunter; act only when the fog clears. Remember, the most dangerous thing is not the wild beast, but you slipping accidentally.
4. High point peak: as soon as you see an upper shadow, decisively exit.
The price hovers at a high level, suddenly surges again. Are you feeling a bit euphoric, thinking it can rise further? Stay calm! Experts will keep an eye on that 'upper shadow', and once it appears, they will sell immediately, securing their profits.
Deep meaning: Trying to get more than you can chew, high places are cold. The view from the peak is beautiful, but don't forget it is also very cold.
5. Low point lower shadow: This is the best signal for 'picking up bargains'.
The price is sideways at a low level, then hits a new low, but suddenly a lower shadow appears. Those who understand know that this is the moment heaven rewards you. Act decisively and buy!
Deep meaning: The premise of picking up bargains is that a 'leak' has already appeared; do not be the one catching flying knives during a price drop.
6. Setting a stop-loss is a required course: prepare to admit defeat before trading.
Before trading, experts have already adjusted their mindset: 'If this trade goes wrong, I'll take the loss.' Therefore, they set stop-losses in advance and strictly execute them. The most important principle: never trade heavily!
Deep meaning: Trading is like war; first preserve your life, then talk about the next round. Trading with heavy positions is like a rookie hunter going into the jungle unarmed, the result is just a sacrifice to the market.
7. Short at resistance and long at support: grasping the secret of winning rates.
Experts do not trade against the trend. They observe the price: short below the resistance level; long above the support level. Why? Because this increases the win rate.
Deep meaning: Going with the trend is the investment logic of smart people. Don’t challenge the market, after all, its 'temper' won't change because of you.
8. Adding positions takes courage, understanding how to absorb and release during volatility.
Volatile markets are the 'training ground' for experts; they buy low and sell high, capturing the profits of the waves. But when faced with a one-sided market, they dare to add positions and magnify their victories.
Deep meaning: The courage in trading is not recklessness, but precise judgment of the market and reasonable risk control. Adding positions is a courageous and strategic act.
9. Observation is the trump card of experts.
Frequent trading is a common ailment of beginners, always feeling that not trading is 'wasting the market'. Experts know well: after setting a stop-loss, the remaining task is to—wait! Don't trade frequently, as it will only exhaust you and lead to losses.
Deep meaning: Observation is a skill, patience is wisdom. Experts do not charge into every battle, but wait until the moment that decides victory or defeat to act.
10. Don't be greedy: earning a little every day is enough.
The goal of experts is simple: earn a stable profit every day, rather than always thinking about getting rich overnight. They know that when fishing, one should only pick the middle part, never greedy for the head or tail.
Deep meaning: Greed is the biggest reason for liquidation. The market always has opportunities, but once the account is blown, nothing remains.
In conclusion: the core of the crypto circle is not speed, but stability.
The crypto circle is like a big casino; everyone wants to take away the 'gold mine', but those who can truly return loaded are always those who understand the principles of trading. They maintain a stable mindset, patiently wait, and act based on evidence. The principles above are the secret weapons of experts.
If you think these principles are somewhat 'deep and unfathomable', don't rush; take your time to digest. The road of trading is long, the key is to make sure you walk steadily and far on this path.