If you want to trade cryptocurrencies for a living, these eight rules must be remembered.
I have been in the cryptocurrency space for 10 years, and these eight rules are a must-read before entering the market each day. They have helped me navigate through numerous market crashes. I now share them with those destined to find them, hoping they bring inspiration.
1. Don't just look at daily candles for short-term trading: When trading short-term, you can't just focus on the daily candlestick chart; you also need to look at the 30-minute candlestick chart. At the same time, the overall market must stabilize and resonate before you can make a move.
Sometimes you might see a candlestick with a long upper shadow and think there’s no opportunity, only to find the next day it surges or even hits the daily limit. If you check the 30-minute candlestick chart, you might discover clues.
2. If the trend and order are wrong, do not follow blindly: When the trend and order are incorrect, even a glance might lead to mistakes. You should go with the trend, and the order of the upward movement must not be disrupted.
3. If there's no hot topic for short-term trading, it’s better not to trade: If short-term operations are not in hot or potentially hot sectors, it’s better not to trade at all.
4. Abandon impulsiveness; trading should be planned: Give up the idea of impulsively entering trades and adhere to "trade your plan, plan your trade."
5. Other people's opinions are just references; independent analysis is most important: Anyone's views or opinions are merely references; you need to have your own deep thinking and serious analysis.
6. Determine the direction before choosing coins: First, lock in the big direction, then select individual coins. If the direction is right, results will come easily; if the direction is wrong, efforts will be doubled for half the results.
7. Get involved with coins that are on the rise: Guessing the bottom is a big taboo, always fantasizing about an immediate rebound or ultimate shakeout. Stock prices often move toward minor resistance levels. Getting involved with coins that are on the rise means choosing directions with less resistance.
8. After big gains or losses, take a break to review: After a big gain or loss, first go to cash, and re-examine the market and yourself. After clarifying the reasons, you can re-enter. Years of experience indicate that doing so has a probability of being correct over 90%.
