The trick to trading cryptocurrencies can be summarized in two sentences: minimize losses and let profits run. This means that if you find that the trend of the token is not right, immediately stop-loss, minimizing the loss as much as possible. Once you have made a profit, you must be patient and let small profits turn into large ones.
The first priority for choosing a buying point: three criteria for selecting a stop-loss point to buy tokens: value analysis, technical analysis, and market cycles. Some people only look at value analysis when buying tokens, studying the project's inherent value without considering other factors, while others only look at technical analysis, believing that the market's view of the token is entirely reflected in the changes in stock price and trading volume.
Most traders belong to the second category. The price of a token reflects the future prospects of the company. A more appropriate method is to use value analysis to select tokens. The operations after finding a token mainly rely on technical analysis. Then, based on losing small amounts when losing and making large profits when making money, timely stop-loss. Imagine you are a big player; how would you manipulate public psychology?
The tactics of big players are actually quite simple. When they want to buy in, they either do so quietly or try to trigger a panic sell-off among the public. In the former, you will notice an increase in trading volume, but not significantly, with prices slowly rising step by step. The latter involves creating some widely recognized good selling points. When big players want to sell, they either buy first, causing prices to soar. The process of finding the critical point of price fluctuations is the process of learning to trade cryptocurrencies, requiring continuous discovery of critical points suitable for one's personality and risk tolerance.
When to sell can be divided into two parts: the first is how to choose a take-profit point; the second is how to choose a suitable selling point to realize profits after making a profit. It is difficult to catch the beginning and end of a token; traders should learn how to catch the middle 70% of the price fluctuations. Do not try to find the highest point of the token; you never know how high it will rise. Deciding when to sell is more difficult than deciding when to buy. When losing, you hope to break even, and when making a profit, you want to earn more; your thoughts are in constant struggle. For beginners who are just learning to trade cryptocurrencies, having a mindset of not selling without profit is extremely undesirable. With such a mindset, the fate of failure is almost predetermined.