There is a very foolish method for trading coins, but this method can almost eat away all the profits, so learn slowly. First, when trading coins, we should never do three things.
The first thing is to never buy in when prices are rising. Be greedy when others are fearful, and be fearful when others are greedy. Develop the habit of buying when prices are falling.
The second is to never place large orders.
The third is to never go all-in. After going all-in, it becomes very passive, and the market is never short of opportunities. The opportunity cost of being all-in is very high.
Now let's talk about six guidelines for short-term trading.
The first is that after a high consolidation in coin prices, there will usually be a new high. Conversely, after a low consolidation, there will usually be a new low. Therefore, we should wait until the direction of the trend is clear before we take action.
The second is to refrain from trading during sideways movements. Most people lose money in trading because they cannot adhere to this simplest principle.
The third is that when choosing candlesticks, we buy on a daily line when there is a bearish candlestick. When there is a bullish candlestick, we sell.
The fourth is that when the decline slows down, the rebound will also be slow, but a rapid decline will lead to a quick rebound.
The fifth is to build positions using the pyramid buying method; this is the only unchanging principle of value investing.
The sixth is that when a coin continues to rise or fall, it will inevitably enter a state of consolidation. At this time, we do not need to sell everything at a high point, nor do we need to buy in fully at a low point. Because after consolidation, it will inevitably face a trend change. If it changes downward from a high point, we need to clear our positions in time; in short, we need to act promptly.
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