Livermore's Investment Notes Revealed: What is Cryptocurrency Trading, This is True Cryptocurrency Trading
① Patience is the Key to Making Money: Livermore said, "Money is made by sitting and waiting," meaning that good trading opportunities require patience and cannot be made at any time.
② Follow the Main Trend of the Market: Livermore relied on medium to long-term moving averages to determine market trends. Adhering to these basic principles can help you avoid making wrong decisions due to short-term fluctuations.
③ The Right Timing is More Important Than Prediction: Even if you can accurately predict market movements, if the timing of your actions is wrong, it may lead to losses. Livermore went bankrupt due to acting too early, which taught him to wait until the market trend clearly changes before taking action.
④ Go with the Flow, Do Not Swim Against It: In the cryptocurrency market, the direction of coin prices is usually determined by the amount of funds and the strength of market forces. If a coin stabilizes after a prolonged decline, it may mean that selling pressure has dried up, and the coin price may soon rise.
⑤ The Market Cannot Be Controlled by Individuals: Livermore clearly pointed out that no one can control the market or consistently beat it. True experts follow market trends rather than trying to create them.
⑥ Make a Good Plan, Control Risks: Trading is like warfare; first, send out a small team to scout ahead. If there are traps, the main force will not advance, minimizing losses and protecting overall strength.
⑦ Reasonably Control the Scale of Each Trade: Like trying on clothes, you should first test on a small scale, and once confirmed, go all out. You should not invest everything at the beginning to avoid unsuitable strategies.
⑧ Accept Losses, Control Losses: Small mistakes in trading can be accepted; the important thing is to make big profits at the right time. Even if you misjudge the direction, ensure that losses are minimized.
⑨ Adapt to Market Uncertainty: The market is full of unpredictable factors, and successful traders not only plan for potential profits but also prepare for possible losses.
⑩ Trading is a Business, Not Gambling: Treat trading as a business, pursuing stable profits and controllable risks, rather than relying on luck.