I have a friend who has been trading cryptocurrencies for eight years. Back in the day, he would feel nervous just hearing the words '$BTC', but now he has managed to support his family's livelihood through trading.
He has shared a lot of insights with me, which are the true gems he earned through years of struggles and learning from countless mistakes. I sincerely hope this can help those who are destined to see it, allowing you to encounter fewer obstacles on the path of trading.
He said that when the market is hot and prices are rising rapidly, you mustn't hesitate and should boldly increase your position. It's like driving on the highway; when the road conditions are good, you should step on the gas and let your money generate more money.
Before trading, it is essential to understand macro information and find a support point. This is as important as laying a good foundation when building a house. If you're doing short-term trading, watch the ten-day moving average; if it gets broken and hasn't bounced back, then get out quickly and don't hold onto false hopes.
When prices are low and trading volume significantly increases without a corresponding rise in price, followed by a price adjustment that doesn't break the previous consolidation level, that's a rare buying opportunity. The logic behind this is like the main players quietly accumulating, and the price adjustment signals that they've finished accumulating.
If you accidentally get stuck, don't keep dwelling on how much you initially spent to buy in. Once the price rebounds, seize the opportunity to sell, and wait for the price to drop before buying back. Don't stubbornly think that you must return to your original purchase price before taking action.
When trading, choose those cryptocurrencies that are likely to rise sharply. Although their prices may fluctuate wildly, they often present significant opportunities after a pullback. If you notice a particular cryptocurrency that frequently surges, with pullbacks not exceeding 30%, don’t hesitate; get in quickly, as there may be even bigger surprises waiting for you.
The most important thing in trading is to have discipline. For the cryptocurrencies you believe in, as long as they don’t break critical support levels, be patient and wait. Don’t be tempted to chase after other cryptocurrencies that are rising rapidly; if you do, you might find that the ones you originally held are starting to rise too, leading to a situation where you chase after different coins and end up with nothing.
I also want to remind everyone that the cryptocurrency market is very deep, with trends full of uncertainty and challenges, but opportunities are like hidden treasures that occasionally surface. Investors must fully recognize the risks when deciding to enter this battlefield and always remain calm and rational, employing stable strategies to navigate the changing market!