Master the methods for buying and selling, summarized as follows.
First, those who can buy are apprentices.
The best operational method in the crypto world is:
a. Regardless of bull or bear markets, 5 layers of positions should be in BTC and ETH, while the remaining 5 layers can be used to take bigger opportunities.
b. When the bull market turns back, many altcoins drop to 10% or even 1% of their price. At this time, it's very cheap to buy some promising altcoins with wide consensus, and then wait for the bull market to arrive.
c. In a bull market, various hotspots emerge. For example, in this round of bull markets, sectors like artificial intelligence, gamefi, RWA, public chains, and platform tokens can have small amounts of capital invested in hot speculation. After earning more than 5 times, take profit in time and convert everything to BTC and ETH. Clearly distinguish between what is 'daily living' and what is 'playing around.'
The essence of finance is a Ponzi scheme. Only when the tide goes out do we know who is swimming naked. Leaving in time before various new project bubbles burst is a very wise move.
Second, those who can sell are masters.
When trading coins, do not always think that you can sell at the highest point; the highest point is only known in hindsight. Two relatively reliable selling methods are: target profit-taking method and technical indicator method.
Target profit-taking method: Be content and happy; money cannot be earned endlessly. Nothing can rise to the sky; rises and falls are the essence of the trading market. Everything has a cycle. Set your profit targets or expected prices in advance. For example, if you need 1 million to buy a house this year, set your selling price to make a profit of 1 million and place your order in advance. Once the target is reached, it will be executed automatically. Alternatively, use the ATH price as a reference point, as breaking through previous highs is often difficult and usually follows with a significant drop.
The price for a single order should be set to about 4% below the peak of the phase.
Technical profit-taking method: Set MACD to (12,26,9), and choose the 5-day moving average and 7-day moving average on the candlestick chart. When the 5-day moving average crosses down through the 7-day moving average to form a death cross, and the MACD's DIF line crosses down through the DEA to form a death cross, it indicates that a significant drop is about to begin.
Taking ETH as an example, ETH experienced significant drops on December 4, 2021, September 7, and May 13. In all these cases, this theory proves to be quite accurate.
Third, only those who can stay in cash are the true ancestors.
In a bull market, one should firmly hold onto coins, while in a bear market, one should firmly stay in cash. The highest realm of trading is to remain in cash, as waiting for a significant drop and then entering the market to clean up the mess can yield the greatest profits. Staying in cash is still quite difficult, as you have to endure long periods of tedious waiting and the FOMO mentality after seeing others continuously making money. Based on the volatility of ETH, the chance of a 20% drop can be realistically grasped 4-5 times a year.
