After seven years of trading experience, I have carefully summarized six valuable lessons that may seem simple but are extraordinarily effective.
Focus on strong cryptocurrencies: When trading cryptocurrencies, one must focus on coins with strong upward trends. If in doubt, refer to the 60-day moving average, and enter or increase positions when above the line, while decisively withdrawing when below. This strategy often proves effective in most situations.
Do not chase highs: Once the price of a coin skyrockets over 50% in a short period, do not rush in; otherwise, you may fall into panic. Conversely, buying at low levels is more stable, with controllable risks and great profit potential.
Discern signals of upward momentum: Before a significant rise, there are often several signs, such as price fluctuations within a narrow range (10% - 20%) and low trading volume. At this time, gradually buying on dips can lead to enjoying the benefits of an upward trend.
Keep up with new trends: When new trends emerge in the market, they are often explosive in the first few days. At this moment, following the large funds entering the market typically makes profits easy.
Stay calm in bear markets: When a bear market strikes, do not act impulsively; it is advisable to remain calm for at least half a year. During a downturn, the less you operate, the better; learning to rest at the right times is the way of a cryptocurrency trading expert.
Regularly review and optimize strategies: It is essential to review your trading actions weekly, not only focusing on profits and losses but also considering the accuracy of your strategies. If correct, stick to them; if wrong, correct them immediately. After a few months, your trading strategies will become increasingly robust.
Please remember, success is never a matter of luck; it always favors those who are always prepared!