In an uptrend, go long on strong coins; conversely, in a downtrend, go short on the weakest coins.
For example, at the beginning of a bull market, the strongest rising assets are Bitcoin and Ethereum. When pulling back, these two currencies are the first choices for long positions. During a decline, shorting Bitcoin is the preferred option. Even if the final result shows that mainstream coins decline more than Bitcoin, only shorting or chasing Bitcoin can greatly avoid the risk of a violent rebound. Most participants in the crypto market are short-term traders, and it is difficult to hold until the ideal exit points while also not being very skilled in position control. They cannot rely on volatility to average out their positions. Given this situation, for most traders, a good entry price outweighs everything else. Once there is a profit, take some off the table for safety, and set a stop loss at the cost price for the remaining part.
The essence of contract trading strategy
(1) Identify the main trend and trade in the direction of the main trend; otherwise, do not enter the market.
(2) If you are trading in the direction of the trend, entry points include: 1. A new breakout point of the trend; 2. A breakout point from a sideways consolidation trending in a certain direction; 3. A pullback point in an uptrend or a rebound point in a downtrend.
(3) Following the trend with your position will bring you substantial profits; never exit early.
(4) If your position aligns with the larger trend and your unrealized profits prove you are correct, you can use a pyramid strategy to increase your position.
(5) Maintain your position until the trend reverses and you can exit. (6) If the market trend is contrary to your entry position, stop loss and run.
Summary: The way of trading is to accumulate little by little, compounding is king. If you have moved away from the cost, you must not turn back into a loss. If you have made a profit, be sure to take some off the table to avoid going empty-handed. In short: If you make a profit, be bold in taking action, and let the remaining part return to the original price in loss. #加密市场反弹
