Cryptocurrency Trading Profit Secrets: Even Simple Methods Can Have Great Wisdom
In cryptocurrency trading, there is a particularly practical but very stable method that can help you keep your profits firmly in hand. This method requires time to gradually refine, so don't rush; let's take it step by step.
First, there are three iron rules of cryptocurrency trading that you must remember, and absolutely do not violate!
The first rule is: Don't chase prices! When you see the price skyrocketing, resist the urge to jump in; buying at this point carries high risk. You need to learn to be brave and buy when others are scared to death, that is, when prices are falling. Conversely, when prices are rising rapidly, you need to be cautious and not rush in blindly.
The second rule is: Don't put all your eggs in one basket. In cryptocurrency trading, you need to diversify your investments; don’t put all your money into one coin, because if that coin fails, you could incur significant losses.
The third rule is: Don’t go all-in! Going all-in is like pushing yourself to a dead end. There are plenty of opportunities in the market; if you go all-in, you miss out on other opportunities. Therefore, funds should be allocated reasonably; don’t make yourself too passive.
Now, let's talk about a few tips for short-term cryptocurrency trading:
First, when prices are high, you should wait a bit and not rush to buy; prices might rise a bit more but could also fall. Similarly, when prices are low, don't rush to sell; they may still drop further but could also rebound. Therefore, you should wait until the direction is clear before making a move.
Second, during sideways trading, absolutely avoid trading! At this time, the market is like a foggy forest; if you enter, you're likely to get lost, and losing money is inevitable.
Third, when looking at candlestick charts, try buying during bearish candles and consider selling during bullish candles. Although this is not a hard rule, it tends to be accurate in most cases.
Fourth, if prices are falling slowly, rebounds will be slow; if they fall quickly, rebounds will be vigorous. You need to learn to observe the market's rhythm and follow its pace.