Here are the 5 basic skills needed to make money in the cryptocurrency market through professional trading:
1. Choose the trend, 2. Choose the coin, 3. Timing, 4. Take profit, 5. Position management
Choosing the trend: The importance of trends is self-evident. Finding the right trend and following the big direction is crucial; as the saying goes, even pigs can fly on a windfall. The trend of cryptocurrencies is relatively clear, with halving occurring every four years, creating a cyclical trend, compounded by the factors of the Federal Reserve's monetary policy. Understand these two aspects and choose trends that benefit your trading, grasping the big direction is not a problem.
Choosing a coin: After choosing the right direction, you need to choose which coin to buy. Most coins accumulated at the bottom of a bear market will perform well in a bull market, but there are also projects like EOS that are notoriously poor performers. So, choosing the right coin is crucial.
Regarding the method of selecting coins, you can explore by observing the fundamental information of the coins, traces of institutional accumulation, price strength performance, as well as technological evolution, emotional evolution, and narrative development.
Timing: Once you have chosen a desirable token, you need to observe the market to find the right time to enter. This step is crucial; good tokens are often available, but good entry opportunities require professional data support to buy in. A lower entry price and an appropriate entry timing can help you maintain a calm mindset during volatile fluctuations and maximize profits. I suggest learning candlestick chart techniques. Various schools, such as Dow Theory, derivative chart analysis, or Wyckoff, as well as commonly used modular trading systems, and the principles of institutional orders currently used by institutions, are all classic technical theories. Mastering these techniques can help you find suitable buying opportunities.
Taking profit: It is often difficult to take profit accurately. I commonly use the method of taking profits in batches, leaving 10% of my position to feel comfortable with market emotional fluctuations, whether they rise or fall.
Finally, the most important aspect is position management. This step is almost related to the duration of your lifeline in cryptocurrency; if this step is not done well, you will not be able to achieve sustained stable profits. You can adopt the principles of pyramid trading, such as 334 or 136 principles. The core is to control your position to manage your mindset and emotions.
When you find the opportunity to take a 30% position in a certain coin, you won’t be hoping for it to surge; instead, you will think about adding more if it pulls back. If you start with a full 100% position, a pullback will negatively impact your mindset.
If there is a direct surge now and you still have 30% of your position in the market, you will feel no psychological pressure. You can attack or defend. This is how to maintain a calm mindset while trading.
The cryptocurrency market does not lack opportunities; what it lacks is your clear mind when facing opportunities and risks.
From 博博singsong668