If you want to survive in the crypto world for the long term, these 8 trading principles must be etched into your heart; they can help you avoid most pitfalls:
1. Strictly control fund management: Never invest all funds in batches. Only use one-fifth of the position each time you enter the market, while setting clear stop-loss levels to lock in risks within a controllable range. This is the bottom line for survival. 2. Trade with the trend: Look for low positions to layout in an uptrend, do not go against the trend; during a downtrend, never easily try to catch the bottom, even if it seems to have "dropped to the right level", do not use funds to bet on a rebound. 3. Refuse to chase the rise: Cryptocurrencies that experience a short-term surge often carry high risks, and entering at high levels is likely to lead to being trapped. It’s better to miss out than to become a "bag holder." 4. Using MACD to assist in judgment: When a golden cross occurs below the 0 axis, opportunities can be focused on; when a death cross appears above the 0 axis, consider taking profits and exiting in a timely manner, allowing the indicators to help you make rational decisions. 5. Only increase positions when profitable, and cut losses when in the red: Averaging down is not a tool for getting out of a position. Adding to a losing position only amplifies risk, so be decisive in cutting losses when needed; only when in profit can you moderately increase positions to expand gains. 6. Pay close attention to trading volume: solely looking at candlesticks can easily lead to misjudging trends; the combination of price and volume is key - an increase in volume during an uptrend is more stable, while a surge in volume during a downtrend requires caution; trading volume is the "verification signal" of the trend. 7. Only focus on clear trends and mainstream coins: prioritize coins with moving averages turning upwards, as a clear trend is safer; try to avoid volatile markets and concentrate on mainstream coins to reduce the risk of small coins crashing. 8. Persist in reviewing and optimizing: The market changes every day, and there is no strategy that is effective forever. Spending time every day to review trades, summarize successes and failures, and continuously adjust strategies is the only way to keep up with the market rhythm. #BTC#
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If you want to survive in the crypto world for the long term, these 8 trading principles must be etched into your heart; they can help you avoid most pitfalls:
1. Strictly control fund management: Never invest all funds in batches. Only use one-fifth of the position each time you enter the market, while setting clear stop-loss levels to lock in risks within a controllable range. This is the bottom line for survival.
2. Trade with the trend: Look for low positions to layout in an uptrend, do not go against the trend; during a downtrend, never easily try to catch the bottom, even if it seems to have "dropped to the right level", do not use funds to bet on a rebound.
3. Refuse to chase the rise: Cryptocurrencies that experience a short-term surge often carry high risks, and entering at high levels is likely to lead to being trapped. It’s better to miss out than to become a "bag holder."
4. Using MACD to assist in judgment: When a golden cross occurs below the 0 axis, opportunities can be focused on; when a death cross appears above the 0 axis, consider taking profits and exiting in a timely manner, allowing the indicators to help you make rational decisions.
5. Only increase positions when profitable, and cut losses when in the red: Averaging down is not a tool for getting out of a position. Adding to a losing position only amplifies risk, so be decisive in cutting losses when needed; only when in profit can you moderately increase positions to expand gains.
6. Pay close attention to trading volume: solely looking at candlesticks can easily lead to misjudging trends; the combination of price and volume is key - an increase in volume during an uptrend is more stable, while a surge in volume during a downtrend requires caution; trading volume is the "verification signal" of the trend.
7. Only focus on clear trends and mainstream coins: prioritize coins with moving averages turning upwards, as a clear trend is safer; try to avoid volatile markets and concentrate on mainstream coins to reduce the risk of small coins crashing.
8. Persist in reviewing and optimizing: The market changes every day, and there is no strategy that is effective forever. Spending time every day to review trades, summarize successes and failures, and continuously adjust strategies is the only way to keep up with the market rhythm. #BTC#