In the ever-changing cryptocurrency market, you cannot do without real skills. Today, I present to you a carefully summarized set of practical rules; remembering these key points will help you find your direction amid the tumultuous waves of the cryptocurrency market and move forward steadily.
Rule One: Wait for the trend change; act when the opportunity arises.
When the market is as unclear as fog, and both bulls and bears are at a stalemate, during the consolidation phase, do not let anxiety cloud your judgment and act blindly. At this time, the wisest approach is to suppress your emotions and observe calmly. Closely monitor various technical indicators, market news, and fund flows, waiting for the moment when the situation becomes clear and direction is discernible. Once a signal for a trend change appears, such as a crossover of moving averages or a breakthrough of key resistance levels, decisively enter the market; this way, you can minimize risk and increase your chances of winning.
Rule Two: Do not be greedy for hot positions; flexibly switch positions.
Popular cryptocurrencies always come with an aura, attracting a large influx of funds, causing prices to soar in a short time, making people’s hearts race. But remember, trends can come and go quickly. The nature of funds is to seek profit; once the hot spot shifts, funds will quickly withdraw like a tide. If you cling to the short-lived glory of popular positions and react slightly slowly, you may easily get trapped at high levels. Therefore, you must always remain vigilant, closely monitor changes in popularity, utilize technical analysis tools to predict fund flows, and timely adjust your positions, transferring funds to coins with greater potential and better trends.
Rule Three: Jumping long bullish; hold your positions tightly.
During the process of rising coin prices, if a high-opening bullish candlestick suddenly appears on the K-line chart, like an arrow piercing the clouds, and the trading volume simultaneously increases, it is like sounding the horn for a market acceleration charge. At this point, do not be intimidated by the short-term surge and hastily sell your holdings. On the contrary, you should be firm in your confidence and hold onto your coins steadily, as this often indicates that a larger upward space is about to open up, and the subsequent market is expected to continue climbing. As long as there is no abnormal shrinkage in volume and the upward trend remains unchanged, just sit back and wait for your wealth to grow.
Rule Four: Massive bullish candlestick; secure your profits.
Whether the coin price is high or low, once a massive bullish candlestick appears on the K-line chart, it is like the calm before a storm, and there is a high probability of hidden pullback risks. Even if the coin price has reached its limit, seemingly prosperous, don't let victory cloud your judgment; you must decisively exit in time before the market closes. This is because a massive bullish candlestick usually indicates a fierce struggle between bulls and bears on that day. Once a large amount of funds flows in to push up the price, if the subsequent supporting strength is insufficient, it can easily trigger a pullback. If you don't withdraw early, the profits you have gained may instantly turn into bubbles.
Rule Five: Seek opportunities on the line, avoid risks off the line.
Understanding moving averages and accurately grasping support and resistance levels are essential skills for survival in the cryptocurrency market. The daily moving average acts like an offensive line on the battlefield, indicating the short-term defensive and offensive direction. Generally, observing for 3 to 7 days can yield more accurate short-term trend signals. In short-term trading, time is money; you must avoid dragging your feet. When the coin price stabilizes above the daily moving average, and the moving averages are in a bullish arrangement, it is a good time to buy on dips, referred to as 'buying on the line.' Conversely, when the coin price falls below the daily moving average and the moving averages turn bearish, it is a critical moment to sell decisively, known as 'selling off the line.' Following this strategy can effectively avoid risks and seize opportunities.
Rule Six: Strictly adhere to discipline and follow the trend.
‘Do not sell when the price rises, do not buy when the price drops, and do not act during consolidation.’ This seemingly simple rule contains profound market philosophy and is the result of lessons learned by countless veterans in the cryptocurrency market with real money. When the coin price rises, it often indicates that the bullish force in the market has been temporarily exhausted, and selling at this time can lock in profits; when the coin price plummets, it is usually a sign of rampant bearish sentiment, and buying rashly is akin to taking a risk in a fire. As for the consolidation phase, the market direction is unclear; any operation at this time is like groping in the dark, making it easy to fall into a passive situation. It is better to remain still and wait for the situation to clarify.
Rule Seven: Plan before you act; enter the market cautiously.
Before buying any cryptocurrency, you must be fully prepared and never act impulsively. First, ask yourself why you chose this coin—was it based on the project's fundamentals, technological innovations, or market hype? Secondly, think carefully about how you plan to operate: is it short-term trading, medium-term holding, or long-term positioning? Furthermore, if the coin price drops, do you have a countermeasure—such as averaging down to lower costs or cutting losses to exit? Finally, if you unfortunately get stuck, how will you break free—wait for a rebound or gradually recover through swing trades? Only by thoroughly considering these questions and cautiously testing the waters with a small amount of capital can you stand firm in the volatile cryptocurrency market and steadily move towards the goal of stable profits.
Remember, the cryptocurrency market is both a 'dream factory' for wealth and a 'high-risk zone.' Only by mastering these rules and applying them flexibly can you carve out your own space in the cryptocurrency world, where opportunities and challenges coexist.
$BTC
