Many people lose money trading cryptocurrencies because they fundamentally fail to understand the basic logic of the market. From losing 800,000 to eventually breaking even and doubling, my summarized experience is this simple—keep doing the right things, and more importantly, never do these three stupid things.
Let's talk about the three never do's: First, never chase high during an uptrend. Conversely, when everyone is in fear, that's actually a good time for greed; when the market is extremely hot, it's time to stay calm. The decline is the window for building positions; this should become a natural instinct. Second, avoid placing orders in a way that risks losing control—don't touch this approach. Third, operating with full position is like sentencing yourself to punishment. Once you're fully invested and caught in a downturn, you have no room to maneuver, and there are plenty of market opportunities. The opportunity cost of being fully invested is extremely high.
For short-term trading of popular coins like SOL, I’ve summarized six core rules: Consolidation at high levels often leads to new highs, while consolidation at low levels usually results in new lows. The key is to act only when the trend direction becomes clear. Additionally, sideways movement is a forbidden zone; most people lose money here. Regarding candlestick selection, buy on a closing bearish (down) candle on the daily chart, and sell on a closing bullish (up) candle—this is the simplest rhythm. If the decline begins to slow, the rebound will also slow; once the decline accelerates, the rebound will accelerate as well.
Use the pyramid method for building positions; this is a fundamental rule of value investing. The last point is very important: after a coin experiences a sustained rise or fall, it will inevitably enter a sideways consolidation phase. At this time, don’t think about selling all at the high or buying all at the low, because after consolidation, a trend reversal is certain. If the price breaks downward from a high, you must decisively clear your positions. The core is to have a sense of rhythm and adjust your strategy in a timely manner.
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Many people lose money trading cryptocurrencies because they fundamentally fail to understand the basic logic of the market. From losing 800,000 to eventually breaking even and doubling, my summarized experience is this simple—keep doing the right things, and more importantly, never do these three stupid things.
Let's talk about the three never do's: First, never chase high during an uptrend. Conversely, when everyone is in fear, that's actually a good time for greed; when the market is extremely hot, it's time to stay calm. The decline is the window for building positions; this should become a natural instinct. Second, avoid placing orders in a way that risks losing control—don't touch this approach. Third, operating with full position is like sentencing yourself to punishment. Once you're fully invested and caught in a downturn, you have no room to maneuver, and there are plenty of market opportunities. The opportunity cost of being fully invested is extremely high.
For short-term trading of popular coins like SOL, I’ve summarized six core rules:
Consolidation at high levels often leads to new highs, while consolidation at low levels usually results in new lows. The key is to act only when the trend direction becomes clear. Additionally, sideways movement is a forbidden zone; most people lose money here. Regarding candlestick selection, buy on a closing bearish (down) candle on the daily chart, and sell on a closing bullish (up) candle—this is the simplest rhythm. If the decline begins to slow, the rebound will also slow; once the decline accelerates, the rebound will accelerate as well.
Use the pyramid method for building positions; this is a fundamental rule of value investing. The last point is very important: after a coin experiences a sustained rise or fall, it will inevitably enter a sideways consolidation phase. At this time, don’t think about selling all at the high or buying all at the low, because after consolidation, a trend reversal is certain. If the price breaks downward from a high, you must decisively clear your positions. The core is to have a sense of rhythm and adjust your strategy in a timely manner.