The trick to trading tokens can be summarized in two sentences: minimize losses and let profits run. This means that if you notice that the token's trend is not right, you should immediately stop-loss and minimize the loss as much as possible. Once you have made a profit, you must be patient and let small profits turn into big profits.
The primary task of selecting a buying point: the three bases for choosing a stop-loss point when buying tokens are value analysis, technical analysis, and market cycles.
Some people only look at value analysis when buying tokens, meaning they study the value of the project itself and ignore others. Some people only look at technical analysis, believing that the market's view of the token is fully reflected in the changes in stock price and trading volume.
Most traders belong to the second category. The price of the token reflects the future prospects of the company. A more appropriate approach is to select tokens using value analysis. The operations after finding the token mainly rely on technical analysis. Then, in line with the principle of losing small amounts when losing money and making big profits when making money, timely stop-losses. Imagine you are a big player; how would you influence public psychology?
The tricks of big players are actually quite simple. When they want to buy in, they either do it quietly or try to trigger a panic sell-off among the public. In the former case, you will notice an increase in trading volume, but not significantly, and the price slowly rises step by step. The latter is to create some commonly recognized good selling points. When big players want to sell, they either buy in first, causing the price to skyrocket. The process of finding the critical point of price fluctuation is the process of learning to trade tokens, which requires continuously discovering the critical points suitable for one's personality and risk tolerance.
When to sell can be divided into two parts: the first is how to choose the take-profit point; the second is how to choose a suitable selling point to realize profits once you have made a profit. The heads and tails of tokens are very difficult to catch, and traders should learn to capture 70% of the middle wave.
Do not try to find the highest point of the token; you never know how high it will rise. Deciding when to sell is more difficult than deciding when to buy. When losing, you hope to break even, and when making a profit, you want to earn more, with thoughts constantly in conflict.
For beginners who have just started learning to trade tokens, having a mindset of neither earning nor selling is extremely undesirable. With such a mindset, a fate of failure is almost predetermined.