Sailing in the turbulent waves of cryptocurrency, every investor is looking for their own navigation chart. Here are seven practical insights and techniques for trading cryptocurrencies, hoping to add stability and wisdom to your journey.
Logical closed loop, unity of knowledge and action: whether it is technical analysis or fundamental research, the key is to maintain the coherence of logic. If using technical analysis...
If the indicator is the rudder, then when the chart goes bad, decisively change direction; if the fundamentals are the sail, then you must adhere to logic and not be swayed by short-term fluctuations. Avoid logical confusion, and let each decision be based on clear and consistent judgment.
Cautious bottom fishing, identify the true bottom: the temptation to catch the bottom is great, but the risks are high. Avoid blindly catching falling knives in a downward trend; true bottom fishing opportunities often appear during the pullback phase of an upward trend. Those with sufficient funds can reduce costs by building positions in batches, but must recognize market bottom signals rather than acting on mere feelings.
Beware of high-level positive news, be cautious of traps: positive news released at a high level is often a precursor to the main force unloading. Positive news is often digested in advance by the main force, retail investors should be cautious to avoid becoming the bag holder. Stay calm, observe market reactions, and avoid impulsive entry.
Position management, both offense and defense: reasonable position allocation is key to stable investment. It is recommended to adopt a diversified strategy, such as 30% short-term and 70% long-term, combined with swing trading to flexibly respond to market changes. Ensure you can move freely in any market environment, seize opportunities, and control risks.
Establish and execute trading principles: develop a clear trading plan, including entry points, stop-loss points, take-profit points, etc., and strictly execute it. Intraday fluctuations can disturb the mind, only firm principles can guide the direction. Stay calm, let the plan be your compass.
Position control, stability is king: position control is an important distinction between beginners and veterans. In the face of market uncertainty, reasonable position allocation can reduce risk and improve capital efficiency. Even if the judgment is wrong, losses can be minimized through position control, maintaining combat effectiveness.
Plan first, strictly execute: prepare thoroughly before trading, and develop a detailed trading plan. During intraday operations, strictly follow the plan to avoid being influenced by market emotions. Combine with the overall market environment; participate decisively if conditions are met, and resolutely give up if not.
Better to miss an opportunity than to make a wrong trade.
Playing around in the crypto space is essentially a battle between retail investors and institutions. If you don't have strong professional skills, you'll only get cut! If you want to strategize together, comment '333' to harvest with the institutions!
