Fake Prophet

After 10 years of trading cryptocurrencies, here are 7 lessons I've learned!

I am someone who has made up my mind to trade cryptocurrencies for a lifetime! From getting beaten up when I first entered the market to now being a full-time trader supporting my family, I have summarized 7 pieces of advice for trading cryptocurrencies. If you want to fight a successful comeback, please read carefully. I hope you can gain some insights from this.

1. When the price of a coin enters a stable upward channel, each pullback is just a temporary stopover and a good opportunity for us to board. There are no coins that keep rising indefinitely; pullbacks are like a compressed spring, aimed at jumping higher.

2. If you enter a confirmed downward channel, any rebound is an opportunity to exit. Once the trend deteriorates, it may take a long time to rise again, perhaps even half a year, so don’t resist the trend and don’t waste your time.

3. Short-term price fluctuations depend on sentiment and fundamentals. In the long run, don’t focus too much on the immediate gains and losses. The current sentiment has settled, while fundamentals determine the length and breadth of the upward movement.

4. Human judgments about bottoms are usually not the bottom, but rather halfway up the mountain. The true bottom is formed by observing sentiment and capital, so absolutely do not blindly buy the dip; often, 9 out of 10 dips will trap you.

5. Don’t rely too much on positive news. Real market movements are about playing expectations. Many retail investors like to listen to news to trade cryptocurrencies, but most of what you hear is just what others want you to hear. Even if it’s true, you don’t know how many hands it has passed through; by the time you find out, the market may have already ended.

6. Don’t casually increase leverage; this will not improve your win rate. Once you incur losses, the numbers will be infinitely magnified. Don’t increase your own risk.

7. Set stop-loss and take-profit levels! Establish clear targets for yourself: decisively stop loss when the price falls to a certain level, and sell when it rises to a certain level. Don’t stare at the gains for too long; many people lose money in a bull market simply because they don’t take profits in time.