1. A significant drop in the morning often presents a buying opportunity:
The changes in market sentiment, especially in the morning, are particularly pronounced. If there is a drop at the opening, this usually means that investors can find some undervalued investment opportunities, allowing them to buy at lower prices. Conversely, if the market shows an upward trend in the morning, this is often a good time to sell, as this upward movement may only be temporary. Remember, these emotional fluctuations in the market actually provide us with many short-term trading opportunities. The key is to learn to think reversely, to be brave when others are fearful and to be fearful when others are greedy, so that we can effectively seize these fleeting opportunities.
2. Steady mindset:
When there is a significant market downturn, remember not to panic. Stay calm to avoid making impulsive decisions due to emotional fluctuations, such as blindly selling stocks to stop losses. The correct approach is to maintain patience, observe changes, and wait for signs of a market rebound before making decisions. Similarly, when the market is in a sideways consolidation phase, with neither significant upward nor downward movements, do not rush to enter the market. At this time, the wisest choice is to wait patiently until the market trend clarifies and a clear directional trend forms. This can effectively avoid potential risks caused by blindly following the crowd.
3. Always leave yourself a way out:
Everyone is the same at first, blinded by greed, trading with full positions, usually when they are very confident. As experiences accumulate, they find that there are often many surprises. Although the general direction is correct, often the entry points they think don’t align with the actual situation. When funds are small, the issue of position management isn't obvious, but when the funds grow, the position management becomes significant. The result of being fully invested is often riding an elevator, being stuck in short positions, enduring significant floating losses, which directly affects trading emotions. Therefore, regardless of the time, one must have a medium to short-term position strategy, and even with 200% confidence, do not go for 100% position, giving yourself a way out!
4. Earn the part you are supposed to earn:
Drowning in a sea of three thousand, only taking a ladle to drink. Most retail investors want to eat every part of each cryptocurrency from beginning to end when they start out, wanting to capture all the upward movement and avoid all the downward movement.
After several years of experience, ultimately gaining nothing, I finally came to a painful realization and decided to focus on a specific pattern. I am focused on identifying confirmed bottom patterns, so what I share is all centered around the bottom. Once there is no bottom, I will then look for accelerated upward patterns. We can examine any candlestick pattern, list out the profitable patterns, and choose a common one. Then, firmly stick to this specific pattern, and over time this pattern will become your ATM, because you are clear about most of the traps and the opportunities it contains, making it easier to earn money, and earn the part you are supposed to earn, which is also the purpose of our entry into the cryptocurrency circle.
5. Do not forget that technical analysis is a game of probabilities:
Technical analysis does not exist as absolutely correct; it is essentially a game of probabilities. This means that no matter what technical method you use to formulate strategies, you cannot guarantee that the market will operate as expected. Technical analysis is merely a prediction and should not be treated as a deterministic event for trading.
No matter how rich your experience or how brilliant your achievements are, do not assume that the market will follow your technical analysis. If you hold this mindset, it is easy to overbet on a preset position, leading to excessive risk exposure. The market will teach you a lesson in no time.
6. Don't sell at the top with high volume, run quickly if there's no volume at the top.
In cryptocurrency trading, when the price of a coin reaches its peak, the change in trading volume becomes a crucial judgment criterion. Suppose a particular coin has been rising continuously for a period and finally reaches a historical high, at this point, the trading volume surges drastically. This could mean that the market's bullish power remains strong and has the momentum to push the price further up. For example, when a major coin breaks through a previous high, the trading volume is several times greater than usual, with a large influx of buy orders pushing the price up by over 10%. However, if the trading volume decreases in the peak price area, this is an extremely dangerous signal. For instance, if another coin shows a significant decrease in trading volume when it reaches its peak, indicating insufficient upward momentum, it may soon enter a significant downward trend.
7. Immediately take profits when the price pulls back to the entry level:
If it turns out that what the investor enters is a wave in trading, when the investor chooses the right time to enter the market and trades according to the plan, following the trend and trading with the trend, then they should patiently hold their positions, allowing them to expand profits as prices fluctuate. Never panic and sell off positions due to small market adjustments, thereby missing out on significant profit opportunities later. However, there is one situation where it is essential to close the position, which is when the market price pulls back to the entry point, and the profit of the position is about to return to zero; it is necessary to take profits and exit.
8. Trend is king; go with the trend:
Once a trend is formed, there is no need for excessive analysis; you must follow it and go with the money. Do not guess, predict, or hypothesize. If you cannot judge the trend, look at the moving averages. The so-called moving average divides the market into bullish and bearish. Bullish means upward, bearish means downward. For short-term trading, look at the daily moving average. If there is a volume breakout, follow it. For medium to long-term trends, look at the weekly moving average. If there is a volume breakout, enter; if it breaks down, exit. Going with the trend means not going against it; if the market is bad, you must firmly stay out of the market. If the trend is downward, do not easily try to catch a falling knife, nor should you fantasize about being able to buy coins that will rise against the market; the probability of this happening is too low. The core of trading cryptocurrencies is to only engage in high-probability events and abandon low-probability ones.
9. Focus on the extreme and simplify the complex:
In fact, I have written a lot about techniques in my previous articles, but no amount of technique can adapt to everyone. This is determined by each person's character, experience, and understanding. Techniques can be learned, but more importantly, it is about refining a method that suits oneself through learning and practice. Noisy techniques do not make money; profitable techniques are not noisy. At a certain stage of trading, what is needed most is to learn to do subtraction, to understand what to let go, and to return to simplicity. It doesn't matter if the method is simple; what matters is making money. It doesn't matter if the method is singular; singularity is good for cycling. As for how to find this point? Keep trying, keep modifying, keep refining. If it works, then scale it up. Always remember to only earn money from one model and only lose money from one model; do not waver and understand trade-offs. This message is for those friends who study techniques every day yet remain confused. Stop, take your time; slow is fast, savor it seriously.
10. Don’t make small profits and big losses:
It's like playing baccarat. Today, I went in, bet 100 or 200, and won 500. I was satisfied and retreated. The next day I won 500 again and retreated, feeling happy. By the third day, it wasn't so smooth; I went in and lost 500, unwilling to accept it, continued to gamble, wanting to recoup my losses. I bet 500, but made a mistake and lost 1000. The profits from the previous two days were gone. Then, feeling dissatisfied, I kept gambling, throwing 500 and 1000 chips randomly, and ended up losing tens of thousands. This is a classic case of winning a little and losing a lot. Each time you open a position, risking a little profit, not even reaching your take profit or protective stop loss, you exit feeling great. But when you lose, you stubbornly hang on, even to the point of liquidation. If so, you are not suitable for investment trading, let alone gambling. Casinos love people like you because you won't always have good luck; you win a little bit every day, a few hundred bucks, but when your luck runs out, you’ll start betting heavily and lose tens of thousands. This is exactly what the house loves: non-farmers, the preferred targets.
In the past few days, I have been preparing for a strategic layout that will soon be launched!!!
Leave 168 to board!!!
