Recently, I sat around the fire and drank tea with a senior tycoon who is very active in the cryptocurrency circle, and listened to his cryptocurrency trading legend: he entered the cryptocurrency circle with 400,000 yuan, and he also experienced ups and downs. His assets once shrank to 80,000 yuan, but now they have exceeded 10 million yuan. The key to turning things around is to continue to learn and then achieve iterative sublimation of cognition. The tycoon gave me five tips on cryptocurrency trading, and see what kind of inspiration it can light up for you!
1. There are ways to stop loss and chase gains
If there is a sharp drop in the early trading, do not rush to stop loss. This is mostly an overreaction caused by the negative news the night before. You may as well wait for the market to repair itself and reverse. On the contrary, when there is a sharp rise at the end of the trading, you should not blindly chase the rise. This is because some major players may be testing the market or even deliberately inducing more buying. It is not uncommon for the market to open low the next day to suppress the market and absorb funds.
2. The volume of transactions reveals the world
Trading volume is a key tool for understanding market trends. When the market is rising with shrinking volume, it is a sign that the main force is highly in control of the market; while when the market is falling with shrinking volume, it indicates that panic trading has not yet emerged, the market freezing point has not yet arrived, and subsequent declines may be difficult to avoid.
3. Detailed analysis of plate structure
You must be familiar with the top structure of the sector. Generally speaking, the sector market follows the five-wave pattern: the first wave rises, and followers gradually come; the second wave comes, and the wash adjustment comes on stage; the third wave rises, and the main rising wave surges; the fourth wave appears, and complex differences are turbulent; the fifth wave comes, and the lifting and selling situation begins. However, the market is treacherous and changeable, and the five waves are not necessarily presented in full. Once the leading stocks sluggishly rise, the compensatory rally may be coming to an end.
4. Plate linkage to observe the slightest details
When the price of Bitcoin is accelerating, the altcoins in certain sectors often jump sharply, which may be the prelude to a reversal in the Bitcoin market. At this time, you only need to pay close attention to whether the major leading stocks stop falling and rebound, and the corresponding index will also rebound accordingly.
5. Only by mastering one skill can you achieve great success
Especially for new friends who are new to the cryptocurrency market, it is best to focus on one trading strategy and study it in depth until you master the skills. As the saying goes, you can't chew too much, and you will be punished by the market if you are not good at learning. Don't change the trading mode at will, calm down, focus on learning, and slowly expand more skills after achieving stable profits. Only in this way can you integrate various methods and go far in the cryptocurrency circle.
