If you plan to trade cryptocurrencies full-time, these eight iron rules must be pondered and understood repeatedly!
1. When entering the market, do not solely rely on the cryptocurrency K-line "trend". Especially for short-term trades, you also need to look at the 30-minute K-line, and at this moment, the overall market should stabilize and resonate before entering. For example, sometimes you see a K-line with a long upper shadow and think there is no opportunity, but the next day a big bullish candle appears. If you look at the 30-minute K-line, you will see the subtlety.
2. If the trend and order are not right, looking one more time is a mistake. You must follow the trend, and the order of rising cannot be disrupted.
3. If the short-term is not in the hot spots or potential hot spots, it is better not to trade.
4. Abandon all impulsive entries. Trade your plan, plan your trade.
5. The opinions or views of others are merely references; you must have your own thoughtful consideration and serious analysis.
6. First determine the direction, then select the coins. If the direction is correct, it will be twice as effective; if the direction is wrong, it will be half as effective.
7. Intervene in coins that are currently on the rise. It is a big taboo to guess the bottom, always feeling that a rebound is imminent, followed by an ultimate shakeout. The price of coins always moves towards the direction of small resistance levels; entering coins that are currently rising means choosing a direction with less resistance.
8. After making a big profit or a big loss, you must empty your position and rest, allowing your brain to cool down and reevaluate the market and yourself. Clarifying the reasons for the big profit or loss before re-entering is not too late. Throughout many years of cryptocurrency trading, I have found that after a big profit or loss, it is essential to empty the position.