As a cryptocurrency investor, it is crucial to master the following points:
Form a logical closed loop: Whether you enter the market based on technical indicators or fundamentals, you must strictly follow your strategy. If the technical indicators deteriorate, you must exit the market decisively, and do not use fundamentals or market sentiment as an excuse. On the contrary, if you enter the market based on fundamentals, you should not be affected by short-term technical analysis.
Be cautious in bottom-fishing: Do not blindly bottom-fish during a market decline, especially when prices are still falling. The real bottom-fishing should be buying a pullback in an upward trend, not taking losses in a falling trend.
Don't chase when good news comes out at a high level: Good news is often released at a high level to attract retail investors to enter the market, and the main force may have sold before the news is announced. If there are too many retail investors following the trend, it may cause prices to fall rapidly.
Control positions: Controlling positions is the main difference between novice and mature investors. Due to market uncertainty, reasonable position management can help you avoid risks and reduce losses when you make mistakes in judgment.
Develop and execute trading plans: Develop trading plans in advance and strictly implement them, and don't let market fluctuations affect your decision-making. If you meet the conditions of the plan, then participate. If you don't meet the conditions, then stick to it. It's better to miss out than to make a mistake.
