The secret to trading tokens can be summarized in two sentences: minimize losses and let profits run. This means that if you find the token's trend is not right, cut losses immediately and minimize the loss as much as possible. Once you have made a profit, you must be patient and let small profits turn into big profits.
The first priority in choosing a buying point: three criteria for choosing a stop-loss point when buying tokens: value analysis, technical analysis, and market cycles. Some people only look at value analysis when buying tokens, studying the intrinsic value of the project without considering others, while others only focus on technical analysis, believing that the market's perception of the token is fully reflected in the changes in stock price and trading volume.
Most traders belong to the second category. The price of the token reflects the future prospects of the company. A more appropriate method is to choose tokens using value analysis. The operations after finding the token mainly rely on technical analysis. Then, in the spirit of losing small amounts when losing money and making big profits when making money, cut losses in a timely manner. Imagine you are a big player; how would you influence the public's psychology?
The tricks of big players are actually quite simple. When they want to buy in, they either do it quietly or find ways to trigger panic selling among the public. In the former case, you will notice an increase in trading volume, but it is not obvious, and the price gradually rises step by step. The latter involves creating well-recognized good selling points. When big players want to sell, they either buy in first, causing the price to skyrocket. The process of finding the critical point of price fluctuations is the process of learning to trade tokens, requiring continuous discovery of critical points that suit 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 having made a profit. It's difficult to catch the tops and bottoms of tokens; traders should learn how to capture 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; when making a profit, you want to earn more, and your thoughts are in constant struggle.
For beginners who are just learning to trade tokens, having a mindset of not selling unless you make a profit is extremely undesirable. With such a mindset, a fate of failure is almost predetermined.