Brother Bin will share some practical advice with you, trading coins shouldn't be too complicated.
I've seen too many people come in with dreams of getting rich, only to end up losing their way. To be honest, in the world of trading coins, smart people often think too much and easily stumble. However, my 'foolish' method has allowed me to steadily earn money over the past ten years.
The ten rules I'm going to share today may not seem magical, but they are the skills that have allowed me to survive in this circle and live quite well.
1. Don't rush to cut losses on coins that are continuously falling.
If a strong coin has been falling for eight or nine days in a row, there's a high probability there will be a rebound. At this time, many people are scared and hurriedly sell, but I think this might be an opportunity. Don't get me wrong, I'm not saying you should go all in, but rather you can cautiously test the waters with a small position.
The market has a characteristic of rising and falling in cycles, just like a pendulum. When it swings to one extreme, it will naturally swing back.
2. Don't be greedy; consider reducing your position after two days of rising.
There is an old saying in the crypto circle: 'If it rises for two consecutive days, be careful on the third day.' It may sound conservative, but it can help you avoid many sudden pullbacks. My own method is to reduce one-third of my position after two days of rising to lock in some profits.
Many people always want to buy at the lowest point and sell at the highest point, but the result is often a slap in the face.
3. Don't act impulsively after a big bullish candle; wait for the next day's trend.
I saw the coin suddenly surge over 7%, don't rush to chase the high. Based on my experience, there will usually be a pullback or consolidation next. If it can maintain its strength the next day, it's not too late to consider entering.
In a bull market, you may indeed miss some opportunities, but you can avoid many traps.
4. For the past bull coins, consider after they cool down.
For coins that have previously surged, you must wait for them to completely cool down before considering them. The market has memory; after a coin is speculated, it takes a long time to digest the trapped positions.
I generally wait for it to return to the point of the initial rise and start paying attention only after it has consolidated horizontally for at least one to two months.
5. If it has been consolidating for too long, consider switching assets.
If a coin has very little fluctuation for three consecutive days, I start to be alert. If after observing for another three days there is still no improvement, I will basically consider switching positions. Capital has time costs, and a stagnant coin is not worth wasting time and money on.
There are so many opportunities in the crypto circle; why only fall in love with one flower?
6. Cut losses in time; preserving the principal is the most important.
If the coin I bought today cannot even cover the transaction fees the next day, I will decisively exit. Don't fall in love with a weak coin; if it doesn't make you money, go find one that will.
Many people hold on and can't let go, resulting in small losses turning into large losses and large losses becoming zero.
7. Grasp the principle that 'where there are three, there must be five; where there are five, there must be seven.'
For coins that have risen for two consecutive days on the rise list, I will look for a low point to enter, as there is often still room for further increases. The vicinity of the fifth day is usually a good selling point, as the pressure to take profits will be relatively high at that time.
Of course, this is not absolute; it must be combined with trading volume and market heat.
8. Trading volume is the 'soul indicator' of the crypto circle.
I pay special attention to trading volume. A breakout after a low-level consolidation is a good thing; however, if there is a high-level breakout but no increase, then caution is needed. Only when volume and price are in sync is it real; otherwise, it may just be a trick by market makers.
Once you understand trading volume, you have understood half of the market's secrets.
9. Only trade coins that are in an upward trend.
This is my core principle: always only trade coins that are trending upwards. If the 3-day line is upward, there are short-term opportunities; if the 30-day line is upward, it can be held for the medium term; if the 80-day line is upward, it may be a main rising wave; if the 120-day line is upward, there are no worries for the long term.
Going with the trend sounds simple, but many people just can't help but try to buy the bottom and sell the top.
10. Small funds also have opportunities; the key is the method.
Many people always feel that with little money, they can't play in the crypto circle; this is a misconception. As long as the method is right, small funds can also roll into a big snowball. But the premise is not to trade crypto full-time, and definitely don't borrow money to trade crypto, as that will completely distort your mindset.
Invest spare money and maintain a good mindset to make rational judgments.
Finally, let me say a few words of sincerity.
After years of trading coins, my biggest realization is: simple methods repeated are much more reliable than chasing hotspots all day. The market changes every day, but human nature and patterns do not.
These 'stupid' methods may seem to lack technical content, but very few people can persist with them. It is precisely because of this that the profits are always made by a minority.
The crypto circle tests patience and discipline; it's not about who is smarter. Find a method that suits you, and then execute it like a robot. You will find that gradually getting rich is not difficult. Follow Bin Ge to learn more firsthand information and knowledge about the crypto circle, precise points, and become your navigator in the crypto world; learning is your greatest wealth!#加密市场反弹 #摩根大通看好BTC $ETH
