Experience in Trading Coins

1. A sharp drop is a touchstone for testing quality coins. If the market plummets and your coin only slightly declines, it clearly indicates that the main force is protecting the price and refusing to let it drop. Therefore, such a coin can be held with confidence, and there will surely be rewards.

2. If a beginner doesn't know how to buy and sell, the simplest and most direct method is to hold above the 5-day moving average for short-term trades. If it breaks below the 5-day line, sell; for medium-term trades, hold above the 20-day moving average, and sell if it breaks below the 20-day line. There are many methods; the best is the one that suits you. The difficulty in trading is not the lack of methods but the execution. Sticking to one method mindlessly can work for over 90% of people. Simplicity is key.

3. Once a main upward wave forms without significant volume increase, intervene decisively. Hold the coin during volume increases, and if it trends down with decreasing volume, hold on until the trend breaks. If there’s a significant volume drop below the trend, quickly reduce your position.

5. If there’s no fluctuation three days after a short-term purchase, sell if possible. If it drops instead of rising after purchase, cut losses at 5% without conditions.

6. If a coin has dropped 50% from a high position and has continuously fallen for 8 days, it has already entered an oversold channel. An oversold rebound is about to occur, and it can be followed.

7. When trading coins, focus on the leading coins—only trade the leaders, not the miscellaneous ones—because during a rise, leading coins increase the most, and during a fall, they are the most resilient. Don’t hesitate to jump in; trading coins often goes against human nature. Don’t buy just because it has dropped a lot, and don’t avoid buying just because it has risen a lot. The more you hesitate to buy, the more it rises; the more you dare to buy, the more it falls. The strong remain strong, and the most important thing in trading leading coins is to buy at high positions and sell at even higher positions!