After ten years of navigating the cryptocurrency world, I have summarized these fifteen "iron rules" for trading cryptocurrencies. Please take your time to read through them; there will surely be gains.
1. When the market crashes, if your coin only slightly declines, it is mostly due to market makers protecting their positions; you can hold on with confidence, as there is hope for future profits.
2. Beginners often struggle with buying and selling; for short-term trading, hold stocks above the 5-day line, and sell if it breaks below; for medium-term, hold stocks above the 20-day line, and exit if it breaks below. The difficulty in trading lies in execution; if you stick to one method, over 90% of people can be surpassed, which is the essence of simplicity.
3. When a major upward trend is forming and has not yet increased in volume, decisively enter; hold if it is increasing in volume and decreasing in volume (as long as the trend is not broken); quickly reduce positions if there is a volume decrease that breaks the trend.
4. For short-term buying, exit if there is no fluctuation after three days; if it drops after buying, cut losses at 5% without conditions.
5. If a coin falls 50% from a high and continues to decline for 8 days, it enters an oversold channel, and a rebound from oversold conditions can erupt at any time, so you can follow up.
6. To trade cryptocurrencies, focus on the leading coins; they rise the most during an increase and are the most resilient during a decline. Don’t be afraid of missing out, and don’t blindly "catch the bottom" or hesitate to chase highs; the strong remain strong, and trading leading coins in the short term requires daring to enter at high points and exit at even higher points.
7. Going with the trend is key; the buying price is not always better when lower; it must align with the trend. Don’t be tempted to buy junk coins just because they are cheap; closely follow the trend to reach the shores of wealth.
8. Making profits is not difficult, but maintaining continuous profits is. Don’t let small gains cloud your judgment; review seriously, distinguish between luck and skill, and building a stable trading system suitable for yourself is the true path.
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