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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