In the cryptocurrency space, where opportunities and risks coexist, some have achieved financial freedom, while others have lost all they invested.
With the simplest method, I have steadily gained over ten million returns from the cryptocurrency market.
'Simplicity is the ultimate sophistication'; complex thinking and excessive worry can hinder us from making accurate judgments, and those who incur losses often find themselves entangled in such confusion.
The following shares several classic maxims; although they seem simple,
they contain profound market wisdom. As long as you grasp these key points, achieving substantial profits is not difficult, at least making a small profit is not a challenge.
Observe the highs and lows again
When the market is in a high or low horizontal consolidation phase, observation is a more prudent strategy. The appearance of horizontal consolidation often precedes a change in trend. After digesting previous fluctuations, the market will ultimately choose a clear direction. At this time, rash actions may lead to unnecessary losses. Wait for the market to clarify, then follow the trend accordingly.
Therefore, it is a rational approach; during horizontal consolidation, observation is more valuable than blind trading.
Do not cling to hot positions; adjust positions according to the market.
In short-term trading, popular positions are often the result of speculation. Once the hype dissipates, funds will quickly leave, and investors who remain will face a passive situation. Therefore, it is advised not to hold onto popular positions for too long but to adjust flexibly and maintain agility. As the saying goes, 'short-term popular positions come quickly and go just as fast; a slight misstep can lead to chasing highs and cutting losses. Successful short-term trading is not about blindly following the crowd, but about staying alert and being 'from the beginning.
To achieve the end, ultimately leads to emptiness.
In an upward trend, one must be steadfast with positions that have gapped up.
If a bullish candlestick with a gap up appears in an upward trend, accompanied by increased volume, it indicates that the market has entered a phase of accelerated rise. At this time, you should maintain your composure and firmly hold your positions, as this situation often brings a significant surge, referred to as the 'acceleration period'. It emphasizes that during this phase, one must stay resolute and not be swayed by short-term fluctuations, in order to achieve substantial profits.
A huge bullish candlestick signals a decisive exit; whether the market is at a high or low, when a huge bullish candlestick appears, it is a signal to exit. In this case, even if you see a limit up, you must decisively close your position, because in most cases, a pullback will follow a huge bullish candlestick. No matter how tempting the profits are, taking profits and closing positions decisively is key to avoiding profit reversal.
The core of this strategy is 'know when to advance and retreat'; at all times, one must guard against risks and control the drawdown of profits.
