A simple yet stable method for trading cryptocurrencies that helps you maintain steady profits:
First, be sure to avoid the following three things:
1. Avoid chasing prices. Learn to "be greedy when others are fearful, and fearful when others are greedy." When the market is down, it is often a good time to buy. Developing this habit will help you better grasp the market rhythm.
2. Diversify your investments. Do not put all your funds into one cryptocurrency to prevent risks brought by market fluctuations. By diversifying your investments, you can reduce overall risk.
3. Avoid being fully invested. Being fully invested can put you in a passive position during market changes. Maintain flexible positions to seize more market opportunities.
Here are six key phrases for short-term cryptocurrency trading:
1. Wait for signals. After a high-level consolidation, the price usually reaches a new high, and after a low-level consolidation, it usually reaches a new low. Therefore, only act after clear price change signals to avoid blindly following the trend.
2. Do not trade during sideways markets. Being patient during sideways movements is key. Avoid meaningless operations to prevent losses.
3. Pay attention to candlestick signals. Buy on bearish candles and sell on bullish candles. Short-term reversal signals from candlesticks are crucial for trading.
4. Be aware of trend changes. When the decline slows down, rebounds also slow down; when the decline accelerates, rebounds also accelerate. Understand the changes in market trends to grasp the rhythm and strength of rebounds.
5. Use the pyramid buying method. This method is suitable for value investing, gradually increasing your position to avoid putting in too much capital at once.
6. Watch for changes after sideways movements. After a cryptocurrency rises or falls, it usually enters a sideways state. During the sideways phase, avoid fully buying or selling, and wait for change signals. If the trend is downward, promptly liquidate your position.
By applying these methods, you can maintain stability amidst market fluctuations, avoid significant losses, and achieve long-term stable profits through rational operations.
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