The key to cryptocurrency trading is timing, when to buy and when to sell.
The tricks of cryptocurrency trading can be summarized in two sentences: the losses are infinitely small, and the profits will run wild.
This means that if you find that the trend of the token is not right, stop loss immediately and reduce the loss to the smallest possible. Once you make a profit, you must remain patient and turn small profits into big profits.
The first priority in choosing a buying point: choosing a stop loss point
Three bases for buying tokens: value analysis, technical analysis, and market cycle.
Some people buy tokens based on value analysis, that is, they study the value of the project itself without considering other factors, such as Buffett. Some people only look at technical analysis and believe that the market's view on the token is fully reflected in the changes in the stock price and its trading volume. Most traders belong to the second category.
The price of tokens reflects the future prospects of the company. A more appropriate method is to use value analysis to select tokens. After finding the token, the operation mainly depends on technical analysis. Then, in accordance with the principle of losing small money when losing money and making big money when making money, stop loss in time.
Imagine you are a big investor, how would you mobilize the public's psychology?
The tricks of big investors are actually very simple. When they want to buy, they either do it quietly. Or they try to cause panic selling among the public. In the former case, you will find that the trading volume increases, but it is not obvious, and the price rises slowly step by step. In the latter case, they create some generally recognized good selling points. When big investors want to sell, they either buy first, causing the price to rise wildly, triggering the public's greed to carry the sedan chair, or they create some generally recognized good buying points.
The process of finding the critical point of currency price fluctuation is the process of learning currency speculation. You need to constantly discover the critical point that suits your personality and risk tolerance.
The considerations on when to sell stocks can be divided into two parts: the first is how to choose the take-profit point; the second is how to choose the appropriate selling point to make a profit after making a profit.
It is difficult to catch the head and tail of a token. Traders should learn how to catch the 70% fluctuation in the middle. Don't try to find the highest point of a stock. You never know how high it will rise. Deciding when to sell is more difficult than deciding when to buy. When you lose, you want to get your money back. When you make money, you want to make more. Your mind is constantly struggling. For novices who are just learning to trade cryptocurrencies, it is extremely undesirable to have the mentality of not selling until you make money. With such a mentality, the fate of failure is almost doomed.
The easiest way to decide when to sell a token is to ask yourself, would I be willing to buy this token at this time? If the answer is no, then you can consider selling the stock.
Pay attention to red flags. As you gain experience, you will slowly develop a sense of when it is time to sell. Don't ignore this intuition and trust yourself.
Capital preservation comes first. In any case, if the price of the currency falls below the buying point, you should consider setting a stop loss point. The prerequisite for making money is not to lose money. When the price rises from 10 yuan to 12 yuan, it should be above 10 yuan above the selling point, such as 11 yuan.
Most people who follow the trend die in the shock; most people who do consolidation die in the trend; most people who do short-term trading die in the violent pull; most people who have methods die in the execution; most people who rely on subjectivity die in the feeling; most people who have no methods die in the chaos. Please check in.
When to buy and sell tokens is only part of the cryptocurrency trading. How much risk to take and how to allocate assets are all issues that need to be considered. Cryptocurrency trading is actually a systematic project.
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