Nine Key Techniques in the Cryptocurrency World

These nine techniques are essential to learn. The cryptocurrency world is a place to create wealth, but high returns are often accompanied by risks. I have compiled some investment techniques based on my own experiences to share with everyone.

First, Decisiveness

An excellent investor needs to possess the trait of decisiveness. Once you have identified an opportunity, follow your instincts. Don't be afraid of losses; reasonable losses can help mitigate risks. Avoid being indecisive.

Second, Entry Points

When entering trades, there are two modes in digital currency: bullish and bearish. They can be divided into low bullish, low bearish, high bullish, and high bearish. If there is a one-sided trend, all of these are feasible. However, if the market is fluctuating, then low bearish and high bullish strategies should be avoided. Always refrain from chasing prices upwards and selling at losses.

Third, Position Size

The allocation of funds should match your psychological endurance. When your position is too large or fully invested, any change in trend can lead to greater losses and affect your mental state, preventing calm analysis and decision-making.

Fourth, Taking Profit

In a one-sided trend, using a trailing stop-loss method can increase profit margins. In a fluctuating market, taking profit requires individual assessment of exit points. In such markets, even small profits from each trade can accumulate over time.

Fifth, Stop-Loss

Before investing, you should determine your stop-loss price. After placing an order, make sure to set your stop-loss price. If the market does not move as you anticipated, promptly minimize your losses to preserve your capital.

Sixth, Frequency

Cryptocurrency can be traded 24 hours a day, which may cause you to miss some market movements. You need to manage your trading frequency; excessive trading can lead to errors in technical analysis.

Seventh, Mindset

Your mindset is the most crucial aspect of this industry. The amount of money you make can affect your mindset, but we should focus on whether we are making or losing money, rather than how much we earn. It is better to make small profits than to disrupt your mindset and incur losses.

Eighth, Adding Positions

In a one-sided trend, we can add positions in the direction of the trend, but we must not add positions against the trend. Adding positions against the trend has a high likelihood of increasing losses, and we should never casually revoke or alter stop-loss orders for counter-trend positions.

Ninth, Following the Trend

When the market presents a one-sided trend, we should not think about adjusting our strategy at any time. Perhaps all indicators are at high levels, but indicators can diverge, and we must not act against the trend.