Many people focus too much on short-term market fluctuations and ignore the importance of long-term investment. Successful investors often need time to build and maintain their portfolios, rather than frequently buying and selling. This behavior leads investors to buy at market peaks and sell at lows, constantly repeating the process of losses. The correct approach is based on thorough research and analysis rather than blind following. Today, I share some trading tips with everyone!
1. Understand Basic Knowledge: Master the characteristics of different coins and the principles of blockchain technology to make more informed investment decisions.
2. Analyze News: Pay attention to industry trends and policy changes, as these factors can significantly impact prices.
3. Technical Analysis: Use technical indicators like moving averages, RSI, etc., as decision-making references, but be aware that there are no guarantees for 100% profit.
4. Formulate an Investment Plan: Based on your risk tolerance and investment goals, create a reasonable investment plan to avoid arbitrary operations.
5. Follow the Trend: When the market trend is clear, following the trend can yield profits, but be aware that the trend can reverse at any time.
6. Staggered Building Position: Buy in batches to avoid investing all funds at once, reducing costs and risks.
7. Seize Investment Opportunities: When a bottom signal appears after a long market downturn, or significant positive news is announced, or a key resistance level is broken, it may be a bold investment opportunity.
8. Set Profit and Loss Points: Decisively sell when expected profits are achieved, and promptly stop losses when losses reach a certain level to avoid greed and panic.
9. Stay Calm: Do not be influenced by short-term fluctuations, maintain calmness to analyze market conditions.
10. Choose a Reliable Trading Platform: Select a safe, stable, and reputable trading platform to trade.
11. Long-term Practice: Investment is a long-term practice that requires patience and determination; do not rush for quick success.
12. Risk Management: Pay attention to risk management, do not be greedy for quick gains, and pursue stable wealth growth.
13. Value Investing: In a bear market, buy more as prices drop, supported by patience and belief, to weather both bear and bull markets.
14. Identify Independent Market Coins: Discover and invest in those coins that thrive or decline less during a market downturn.
15. Maintain Liquidity: Sufficient liquidity is sometimes more important than returns; do not lock yourself into illiquidity.
16. Fund Security First: In on-chain operations, the security of funds is paramount; returns are secondary.
17. Simplify Investment Strategies: Find simple and feasible investment strategies that are not disturbed by market noise.
18. Wait for Market Stabilization: In rapidly changing market conditions, wait for the market to stabilize before making investment decisions.
19. Bottom Fishing: Entering the market according to rules during a downward trend to reduce sensitivity.
20. Be Cautious When Buying High: Be cautious when buying high; only the right method can lead to profits. The cryptocurrency trading terminology can be complex; if you don't understand what it means, even if someone explains the operational details to you, you won't comprehend it. Therefore, knowing these terms is crucial, and I've selected some practical ones to share.
1. Limit Order Refers to placing an order when buying/selling on a trading platform by entering your desired price (which you set). Once your cryptocurrency reaches that price, it will automatically execute the trade.
2. Spot Trading Refers to a trading method where payment and delivery happen simultaneously, or through barter trading.
3. Futures Trading Refers to a more advanced trading method developed from spot trading, based on forward contracts.
4. Hedging Refers to simultaneously conducting two trades that are related to the market, opposite in direction, and equal in quantity, offsetting gains and losses.
5. Positive News Refers to news that stimulates price increases, such as a company or developer gaining mainstream media attention or breakthroughs in technological applications.
6. Negative News Information that drives down coin prices, such as national control, central bank suppression, and technical issues!
7. Trading Volume Reflects the quantity of trades and the number of buyers and sellers. Generally measured by the number of coins traded and the total transaction amount.
8. Arbitrage Recharge cash to a lower-priced A platform, then buy BTC/ETH; withdraw BTC/ETH from A platform, and immediately recharge to a higher-priced B platform; once the BTC/ETH is in B platform, sell it immediately, withdraw the cash, and repeat the steps.
9. Leverage Trading As the name suggests, it uses a small amount of capital to invest multiples of the original amount to expect higher returns from the fluctuations of the investment object, or to incur losses.
10. Closing Position Refers to the action of a futures trader buying or selling futures contracts with the same product code, quantity, and delivery month as their held contracts, but in the opposite direction, to settle the position.
11. Double Spend Simply put, double spending occurs when a user attempts to make two payment operations with the same electronic currency asset. In cryptocurrency trading, the payer may attempt double spending, and if the payee does not wait for enough transaction confirmations (usually 6), and accepts the transaction, they may suffer losses from a double spend attack.
12. Position! Refers to the ratio of actual investment to actual invested funds.
13. Full Position Using all funds to buy virtual currency.
14. Reducing Position Selling part of the virtual currency but not all.
15. Heavy Position The proportion of virtual currency compared to available funds is larger.
16. Light Position The proportion of available funds compared to virtual currency is larger.
17. Empty Position Selling all held virtual currency, converting everything to cash.
18. Take Profit After obtaining certain profits, sell the virtual currency held to secure gains.
19. Stop Loss Selling the virtual currency held to prevent further losses. After a certain level of loss.
20. Bull Market Prices continue to rise, with an optimistic outlook.
21. Bear Market Prices continue to fall, with a bleak outlook.
22. Bull (Going Long) Buyers who believe that the coin price will rise in the future, buy the coin, and wait to sell at a higher price for profit.
23. Bear (Going Short) Sellers who believe that the coin price will drop in the future sell the coins they hold (or borrow coins from the trading platform) and wait to buy back at a lower price for profit.
24. Building Position Buying virtual currency.
25. Averaging Down Buying virtual currency in batches, e.g., first buy 1 BTC, then buy another 1 BTC.
26. Full Position Buying all funds in one go to acquire virtual currency.
27. Rebound When the coin price drops, it rises again due to a rapid decline.
28. Consolidation (Sideways Trading) Price fluctuates within a small range and the coin price is stable.
29. Gradual Decline The price gradually decreases.
30. Plunge (Waterfall) The price of the coin drops rapidly and significantly.
31. Cut Loss Selling virtual currency after buying it, and the price drops, to prevent further losses. Or after borrowing coins to short, the price rises, resulting in a loss when buying back the virtual currency.
32. Trapped Expecting the coin price to rise, but after buying, the price drops; or expecting the coin price to drop, but after selling, the price rises.
33. Break Even After buying virtual currency, a price drop causes temporary paper loss, but later the coin price rebounds, turning losses into profits.
34. Missed Opportunity Selling virtual currency due to a pessimistic view, only to see the price rise continuously afterward, leading to missed profit opportunities.
35. Overbought The coin price continues to rise to a certain height, and the buying power is almost exhausted, while it is about to drop.
36. Oversold The coin price continues to fall to a certain low point, and the selling power is almost exhausted, while the price is about to rebound. 37. Inducing Buying The price has been consolidating for a long time, with a high possibility of falling. Most bears have sold their virtual currency, and suddenly, the bears push the price up, inducing the bulls to believe that the price will rise, causing them to buy in; ultimately, the bears suppress the price, trapping the bulls. Rather than fantasizing about getting rich overnight, it is better to calm down and build an investment model that suits oneself based on personal risk preferences and expected returns. The road ahead is still long, but we will face each market fluctuation every day with more calmness, composure, and efficiency, sticking to our plans to achieve long-term investment and life goals. The market is cruel, so we must hone our skills to survive! Success is no accident; opportunities are also reserved for those who are prepared.
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