Share 8 practical experiences and skills for trading cryptocurrencies without losing money!
1. A sharp drop is a touchstone for quality coins. If the market falls and the coin you bought only drops slightly, moving independently, it clearly indicates that there is a market maker supporting it, so you can confidently hold this coin; there will definitely be rewards.
2. If a newcomer doesn't know how to buy and sell, the simplest and most direct method is to hold on the 5-day line for short-term trading. Sell if it breaks the 5-day line; for mid-term, hold on the 20-day line and sell if it breaks the 20-day line. There are many methods, and the best one is the one that suits you. The difficulty in trading isn't the lack of methods, but the execution power. Sticking mindlessly to one method, over 90% of people have no problem.
3. Once a main rising wave forms without significant volume, intervene decisively. Hold if it rises with volume, and if it drops without breaking the trend, continue to hold. If it drops with volume and breaks the trend, quickly reduce your position.
4. If you buy a coin and it doesn't move in three days, sell it if you can. If it drops after buying, cut losses at 5% without conditions.
5. If a coin drops 50% from its high and has fallen for 8 consecutive days, it has entered an oversold channel, and a rebound from oversold conditions is imminent; you can follow in.
6. When trading cryptocurrencies, focus on the leading coins; only trade the leaders, not the miscellaneous ones. Because when the market rises, leading coins rise the most; when it falls, they resist the drop the best. Don’t be afraid to jump in; trading cryptocurrencies is often counterintuitive. Don’t buy just because it has dropped a lot, and don’t avoid buying because it has risen a lot. The more you hesitate to buy, the more it rises; the more you dare to buy, the more it falls. The strong remain strong; for leading coins, the most important thing for short-term trading is to buy at high levels and sell at even higher levels!
7. Embrace the trend and act accordingly. The price at which you buy is not the lower, the better, but rather the more appropriate, the better. You won't gain an advantage just because the buying price is cheap; because the downward trend doesn’t guarantee a bottom. Abandon junk coins; the trend is king.
8. Don’t trade just for the sake of trading. What does this mean? It means that when you don’t have enough confidence that this trade will be profitable, don’t force yourself to open a position. Staying in cash is an art; those who can buy are novices, those who can sell are masters, and those who can stay in cash are grandmasters. The first consideration in trading is not profit, but capital preservation. What matters in trading is not the frequency, but the success rate!
