Over six years in the crypto market, from starting from zero to accumulating tens of millions in assets, I've stepped into countless pitfalls. Today I'm organizing the trading experience condensed from these years into 10 principles, hoping to help you avoid detours.
**Basic Rules**
Starting capital shouldn't exceed 10,000. Don't fantasize about getting rich in a year; focusing on catching one major uptrend wave is enough. The reason many beginners can't break through the million threshold is excessive greed.
**Mindset Management**
Never go all-in constantly. True money makers understand the value of waiting; making a killing once beats tinkering all year. Demo trading can fail infinitely, but one major mistake in live trading could mean permanent exit. Cognition and mindset must always precede capital.
**Timing**
The day after major positive news is announced with a gap-up opening is a selling point. Historical experience repeatedly validates that positive news landing often turns into negative news; greedily chasing the last bite is a taboo.
Remember to reduce positions one week before holidays. During holidays, selling pressure tends to form; going into holidays with empty or light positions helps dodge many unexpected drops.
**Operating Strategy**
For medium-to-long-term trading, use rolling operations. Always keep some cash on hand, sell on rallies, buy on dips, letting your positions flow to survive longer.
For short-term trading, focus on volume and chart patterns. Choose tokens with dramatic fluctuations and active charts; there's no point watching tokens with no movement and no volume.
**Technical Details**
The speed of the decline determines the strength of the rebound. Slow declines mean slow rebounds; sharp declines often bring violent rebounds. Identify the rhythm clearly and don't blindly bottom-fish during slow declines.
For short-term trading, 15-minute K-lines combined with KDJ indicators are sufficient; don't overcomplicate it. Once you spot key levels on small timeframes, buy and sell points naturally emerge.
**Risk Bottom Line**
Admit losses and cut them; stop-loss protects your lifeblood. Never stubbornly hold single losing trades; preserving capital gives you the right to stay in this market.
The final rule: mastering two or three methods is enough. Don't get overwhelmed by various indicators; specialization generates more profit than scattered knowledge. No matter how volatile the crypto market is, these basic principles still apply.
Over six years in the crypto market, from starting from zero to accumulating tens of millions in assets, I've stepped into countless pitfalls. Today I'm organizing the trading experience condensed from these years into 10 principles, hoping to help you avoid detours.
**Basic Rules**
Starting capital shouldn't exceed 10,000. Don't fantasize about getting rich in a year; focusing on catching one major uptrend wave is enough. The reason many beginners can't break through the million threshold is excessive greed.
**Mindset Management**
Never go all-in constantly. True money makers understand the value of waiting; making a killing once beats tinkering all year. Demo trading can fail infinitely, but one major mistake in live trading could mean permanent exit. Cognition and mindset must always precede capital.
**Timing**
The day after major positive news is announced with a gap-up opening is a selling point. Historical experience repeatedly validates that positive news landing often turns into negative news; greedily chasing the last bite is a taboo.
Remember to reduce positions one week before holidays. During holidays, selling pressure tends to form; going into holidays with empty or light positions helps dodge many unexpected drops.
**Operating Strategy**
For medium-to-long-term trading, use rolling operations. Always keep some cash on hand, sell on rallies, buy on dips, letting your positions flow to survive longer.
For short-term trading, focus on volume and chart patterns. Choose tokens with dramatic fluctuations and active charts; there's no point watching tokens with no movement and no volume.
**Technical Details**
The speed of the decline determines the strength of the rebound. Slow declines mean slow rebounds; sharp declines often bring violent rebounds. Identify the rhythm clearly and don't blindly bottom-fish during slow declines.
For short-term trading, 15-minute K-lines combined with KDJ indicators are sufficient; don't overcomplicate it. Once you spot key levels on small timeframes, buy and sell points naturally emerge.
**Risk Bottom Line**
Admit losses and cut them; stop-loss protects your lifeblood. Never stubbornly hold single losing trades; preserving capital gives you the right to stay in this market.
The final rule: mastering two or three methods is enough. Don't get overwhelmed by various indicators; specialization generates more profit than scattered knowledge. No matter how volatile the crypto market is, these basic principles still apply.