Short-term tips to avoid losing money‼️
I feel a bit of pain seeing some friends losing money. It's hard to say whether one can make money or not, but losing money can still be controlled with some techniques. Recently, I've summarized a few for reference:
1. Never chase high prices
Market trends are fluctuating, and chasing high prices can lead to losses at any time. What counts as chasing high? For example:
high and low range, if it exceeds 1/2, do not chase. The chance is 50/50, and it can be very uncomfortable.
If a specific variety has a daily fluctuation of 100 points, and it has already moved more than 50 points, do not chase, as it could pull back at any time.
If you anticipate a potential upward trend, and if you use Bollinger Bands, don’t enter when it touches the upper band; wait for the price to pull back and touch the lower band, middle band, or the 10-day moving average.
2. Don’t catch falling knives
You must wait for the market to stabilize, and the characteristics of stabilization must be summarized by yourself.
For example, arc tops/bottoms, irregular double bottoms, etc. Remember that markets that can rapidly reverse are very rare, so don’t rush. However, it’s particularly important to note that if a consolidation pattern appears in the middle of the high and low range on the 1-hour chart, it is likely to be a continuation pattern rather than a reversal.
3. Avoid trading during quiet periods
Do not enter the market after 2:30 PM or after 10:30 PM. The day's market has already played out, trading volume shrinks, and there won't be much movement; the direction is also unclear.
4. Pay attention to trading volume
When entering the market, be sure to observe the 5-minute trading volume. Think about it: can retail investors generate large trading volume bars without any special news? It must be the main force taking action. The classic scenario is when moving averages converge, and then the trading volume suddenly expands in stages. Do not trust K-line trends without trading volume.
5. Control single trade losses
If the market is uncertain, do not enter the market. Don’t rely on stop-loss as confidence to enter. Have a clear entry logic, set a tight stop-loss after entering, and if the logic for entering remains unchanged after hitting the stop-loss, wait for a suitable time to enter again.
If you want to learn more about cryptocurrency, feel free to chat with Tingjie.
