I just had tea and chatted with a big cryptocurrency trader. He shared his investment experience: he entered the cryptocurrency circle with an initial 400,000 yuan, lost 80,000 yuan, and now has assets of over 10 million yuan. He said that the key to helping him change his destiny was to persist in learning and constantly improve his cognition. The following are five experiences he summarized, I hope to give you some inspiration!
Don't rush to stop loss when the early trading falls sharply:
Usually, the early trading plunge is due to an overreaction caused by bad news the night before, and you can wait for the market to repair and reverse. Don't blindly chase the late rise, because some main players like to test the market or induce investors at the end of the trading, and may open low the next day to suppress and absorb funds.
Use trading volume to judge the market trend:
Trading volume is a very practical technical indicator. When the trading volume shrinks during the rise, it means that the main force has a strong ability to control the market; when the trading volume shrinks during the fall, it means that the panic has not been completely cleared, and the market may continue to fall.
Learn to see the top structure of the sector:
The sector market is usually divided into five waves: the first wave attracts followers, the second wave washes and adjusts, the third wave is the main rising wave, the fourth wave is a complex divergence, and the fifth wave is lifting and pulling shipments. The third wave has the largest increase, the first wave is second, and the fifth wave is the lowest. However, the market is changeable, and some market conditions may end before the fifth wave is formed. When it is found that the leading sector is stagnant and the compensatory rally is no longer continuing, it is likely to have reached the top.
Pay attention to the acceleration period at the top of the market: market layout strategies for free every day!