In cryptocurrency trading, many investors make the following mistakes:

Common Trading Mistakes: Holding on during losses: Not cutting losses when in the red, with a hope that the situation will improve, leading to larger losses.

Hasty selling during profits: Selling as soon as there is a slight profit, missing out on further price increases.

Take-Profit and Stop-Loss Strategies:

Take-Profit: Consider selling when profits reach 15%, and sell immediately if it falls back to 10%.

Stop-Loss: Cut losses decisively when losses exceed 5% of the principal.

Win Rate and Returns:

Even with a win rate of only 50%, following take-profit and stop-loss rules, after 100 trades, the theoretical return can reach 300%.

Human Weaknesses:

Greed and fear in trading are fatal; it is very important to stay calm and go with the trend.

Trend Judgment and Following the Trend

Following the Trend: Once a trend is established, closely follow the flow of market funds. Judgment Tools: Moving Averages: Daily moving averages focus on the short term, while weekly moving averages focus on the medium to long term. Trading Volume: A breakout with increased volume indicates a bullish signal.

Avoid Counter-Trend Operations:

Avoid bottom-fishing during market declines; set stop-loss orders after confirming the correct trend to prevent losses from expanding.

Short-Term Trading Techniques:

Candlestick Charts and Indicators: Combine 15-minute and 30-minute candlestick charts with KDJ and OBV indicators to help determine entry and exit timing.

Washing and Distribution: Washing clears retail investors through volatility, while distribution shows a significant increase in market volume.

Risk Warning:

If a strong cryptocurrency issues a risk announcement, it may be a short-term shakeout rather than a reversal, and there may still be potential for an increase.

The key to successful trading is discipline, take-profit and stop-loss strategies, following the trend, and maintaining a rational mindset.