These are the eight hard truths I have summarized from ten years of experience. Think carefully, and you will surely learn a lot!
1. When the overall market crashes, if your coin hasn't dropped much, it’s a good coin; the big players are protecting it. Holding onto such coins is safe, and there will definitely be a time for you to profit.
2. For beginners trading coins, the simplest method is to look at the 5-day and 20-day moving averages. For short-term trading, focus on the 5-day line; if it breaks, sell. For mid-term trading, look at the 20-day line; if it breaks, also sell. It’s not about having many methods; it’s about finding what works for you. The hardest part of trading isn’t finding a method, but sticking to it. If you stick to one method, over 90% of people will succeed.
3. When a major uptrend begins and the volume hasn’t increased much, jump in quickly. If the volume increases and the price keeps rising, continue to hold. If the volume decreases and the price drops but the trend hasn’t broken, continue to hold. However, if the volume breaks down the trend, it’s time to reduce your position.
4. After buying for the short term, if there’s no movement within three days, pull out quickly. If your purchase declines instead of rising, cut losses unconditionally if it falls by 5%; don’t hesitate.
5. If a coin has dropped 50% from its high and has continued to fall for eight days, it’s oversold, and a rebound may be imminent; you can consider entering.
6. When trading coins, focus on the leading coins; avoid the miscellaneous ones. Leading coins rise the fastest and also resist falling the best. When trading coins, go against human nature; don’t buy just because it’s fallen a lot, and don’t avoid buying just because it has risen a lot. The less you dare to buy, the more it rises; the more you dare to buy, the more it falls. The strong remain strong, and when trading leading coins short-term, you must dare to buy at high positions and then sell at even higher positions!
7. Follow the trend; don’t go against it. The buying price isn’t necessarily better the lower it is; it has to be appropriate. A low price doesn’t mean you can take advantage because it could keep falling. We don’t touch junk coins!
8. Don’t get carried away when you make money; remember, consistently making money is the hardest. You need to review your trades carefully to see if it was just luck or if you truly have the skill. A stable trading system that suits you is the key to continuous profits.
Although the market is slightly sluggish now, it will come back. Wait patiently for the pullback opportunity, and when the time comes, I will guide everyone to aim for the huge profit opportunities in altcoins and position ourselves for spot trading; doubling your investment is definitely possible. Like and comment, and let’s seize the big opportunities in this bull market together.