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Cryptocurrency Trading seems profound, but there are actually only a few key points. Using the simplest methods and a few simple rules, I achieved a six-figure profit in just a few months. Today, I will share these insights with you.
**Identifying Signals of Market Makers Protecting the Market**
When the market crashes, you need to look at the coins you hold. If the market drops sharply but your coins only decline slightly, it's not just good luck—someone is accumulating. In this case, the market makers are supporting the price, indicating that they are optimistic about future performance. Such coins can be held with confidence, so don't let the volatility scare you away.
**Simple and Brutal Moving Average Trading Method**
Beginners tend to complicate things the most. In fact, for short-term trading, you only need to focus on the 5-day moving average. If the coin price is above the 5-day line, hold; if it falls below, sell immediately. For medium-term trading, look at the 20-day moving average; the logic is the same. Sounds simple? It is precisely because it is simple that it is the easiest to stick to. Most people fail due to a lack of execution, not because of the method.
**Seizing the Key Moments of the Main Uptrend**
When you find that a coin's main upward wave has taken shape and there isn't too much trading volume accumulated, this is the best entry point. Once it starts to rise with volume, continue to hold. If there is a decline in volume but the trend hasn't broken, still hold. But once there is a decline in volume that breaks the trend line, you need to reduce your position; don't be greedy.
**Short-term Trading Practical Details**
No movement after buying for three days? If you need to sell, just sell, don't wait. Once the loss reaches 5%, cut your losses; this rule must be executed unconditionally. I've seen too many people who let a 5% loss turn into 50% just because they didn't have the heart to cut it the first time.
**Sniping Opportunity for Oversold Rebound**
If a coin drops 50% from its peak and continues to fall for 8 days, it enters the oversold zone. A rebound often emerges at this time. Consider following in with a small position, as the probability of profit is high.
**The Trading Logic of Leading Coins**
Why trade leading coins? Because they rise the most when they are up and are the most resilient when they drop. But many people make the mistake of jumping in when the coin price has dropped significantly, or becoming hesitant when it has risen too much. The strategy for leading coins is to buy at a high position and sell at an even higher position; timing is very important.
**Trends take precedence over price**
Don't always think about bottom fishing when the market is down. The buying price isn't about being lower, but about being more appropriate. If the trend is right, even if it's more expensive, it's still cheap; if the trend is wrong, even if it's cheap, it's still expensive. For underperforming coins, let go when you should, don't be soft-hearted.
**What is the essence of profit**
Anyone can make a profit for a moment; the key is whether one can continue to make money. After each operation, one must review and ask oneself: Was this profit due to skill or luck? Establishing a stable trading system that suits one's temperament is the foundation for long-term profitability.
**Holding Cash is Also a Lesson**
Don't force it if you're not confident. Holding cash is also a part of the strategy; learning to hold cash is considered the beginning. The bottom line in trading is to preserve capital, not to make money. What matters is the success rate, not the frequency of trades. Many people are busy but fail to make money simply because they lack the patience to wait for good opportunities.