There is a silly way to trade cryptocurrencies that can almost guarantee profit, but it takes time to figure it out. When trading cryptocurrencies, there are three things you must never do.
The first thing, don’t buy in when the price is rising; learn to be greedy when others are fearful, and fearful when others are greedy. Get used to buying during declines.
The second thing, don’t place all your orders at once.
The third thing, don’t operate with your entire capital; being fully invested makes you too passive. There are plenty of opportunities in this market, and if you are all in, the opportunity cost of missed chances can be high.
Let’s talk about six tips for short-term cryptocurrency trading:
First, when the price rises to a high level and consolidates, it often can push higher again; when it drops to a low level and consolidates, it often will test the bottom again. So, wait until the direction is clear before taking action.
Second, don’t trade when the price is in a sideways pattern; many people lose money in cryptocurrency trading because they fail to do this.
Third, look at the candlestick chart; when a bearish candle closes, consider buying on the daily chart; when a bullish candle closes, consider selling.
Fourth, if the decline is slow, the rebound will also be slow; if the decline is fast, the rebound will come quickly.
Fifth, when building a position, do it in a pyramid style; this is an old rule of value investing.
Sixth, if a cryptocurrency keeps rising and falling, it will definitely go into a sideways pattern afterward. At this time, don’t rush to sell everything at a high; don’t rush to buy everything at a low, because after the sideways movement, it will always change direction. If it drops from a high position, then quickly clear your position; just make sure to act when the timing is right.
This wave of correction will refine true value; find a cryptocurrency that has a strong backing and is rising against the trend, the next wave’s high multiplier target will be its performance! Like and comment, and when it reaches 88, I will reveal it!
