There is a seemingly foolish but powerful method for trading cryptocurrencies that can help you lock in most of your profits!
When trading cryptocurrencies, there are three things you must remember never to do:
1. Never follow the trend and buy in when prices are rising. You must learn to think in reverse; be brave when others are scared, and be cautious when others are excited. Get in the habit of looking for opportunities to buy when prices are falling.
2. Never put all your funds on a single trade; that's too risky.
3. Never operate with a full position; being fully invested will immobilize you. There are plenty of opportunities in the market, and being fully invested means giving up other potential good opportunities, which is too costly.
Now let's talk about a few tips for short-term cryptocurrency trading:
When prices rise to a high point, they may spike again; when prices fall to a low point, they may test the bottom again. So you must wait until the situation becomes clear before making a move; don’t rush to conclusions.
When prices are stagnant, don’t trade lightly. Many people lose money in cryptocurrency trading because they can't stand the boredom. When looking at the candlestick chart, if the daily line closes bearish, it may be a good time to buy; if it closes bullish, then you should consider selling.
If prices are declining slowly, the rebound will also be slow; if prices are declining quickly, the rebound will come quickly. Building a position should be done layer by layer like constructing a pyramid; this is an iron rule of value investing.
If a cryptocurrency keeps rising or falling, it will eventually enter a consolidation period. At this time, don’t rush to buy or sell your entire position because the direction may change after consolidation. If the direction is down, then you need to withdraw quickly; if the direction is up, then you need to follow in quickly.
For the upcoming layout direction, I will guide everyone to aim for the lucrative opportunities in altcoins, with an expected gain of more than 10 times being no problem. Like and leave a comment, and I’ll take you through the entire bull market!