Want to survive in cryptocurrency trading for the long term? Remember these 8 'rules of experienced traders' that can save your life.
Newbies impulsively lose money, while experienced traders earn steadily, which boils down to one thing—having a sense of rules.
After ten years of trading, what I rely on is not talent, but a set of 'methods to restrain myself at critical moments.'
Today, I’ll write it down clearly; those who can see this are destined to be lucky.
1. Don’t look at the market, don’t take action.
Focusing only on daily charts for short-term trading? Not enough.
The daily chart indicates the direction, while the 30-minute chart is for entry.
Some bearish candles may look weak, but if the structure on the 30-minute chart looks beautiful, it can open high and soar the next day—this type of opportunity doesn’t need to be grasped too often; two or three times a year is enough to profit.
2. If the trends aren’t aligned, even a glance could be disastrous.
If the direction is inconsistent and the structure is chaotic, you can still make money by going against the trend, but that’s called luck, not skill.
Going with the trend is always the lowest-cost choice.
3. If you’re not near the hot spots, it’s better to rest.
Short-term trading requires fighting around the flow of funds.
If you’re not in the hot spots, you’re fighting against a vacuum.
4. Always execute the plan, don’t execute emotions.
Impulsive trading is the primary source of losses for countless people.
“Trade your plan, plan your trade.”
5. Don’t blindly trust anyone.
Others’ opinions are, at most, suggestions.
Your own judgment is the steering wheel of your position.
6. Set the direction first, then choose the coins.
This is a common trait among all experts.
If the direction is right, even a mediocre coin can bring profits;
If the direction is wrong, even a leader coin can backfire.
7. Entering during an upward structure and guessing the bottom is gambling.
If you like to catch bottoms, you just like to be educated.
Prices always move toward the direction of least resistance, and coins during an uptrend are the least resistant.
8. After a big gain or loss, you must rest.
Whether it’s to celebrate or to average down, operations driven by emotions have a success rate close to 0.
Staying out of the market for a day makes it much easier to watch the charts.
In my own ten years, the accuracy of 'resting after a big win or loss' exceeds 90%.
It’s not skill that makes money, it’s the system + discipline + execution.
If you engrave these eight points into your bones,
You will find that many losses can actually be completely avoided.
