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Entering the crypto world but always losing money? The core issue isn't whether you're bullish or bearish, but whether you've truly understood the market rhythm.
Many people joke about "selling on dips and buying on rallies," but little do they know, this is precisely the survival code of market veterans. Imagine, would you buy a milk tea shop that's about to go bankrupt? Why should your logic for choosing coins be any different? Staring at a meme coin that has dropped to the floor and shouting "value investing"—that's not conviction, that's brain water. The ancients said, "A gentleman does not stand under a dangerous wall," which in the crypto world means: avoid coins that have already broken through the bottom. The more violently it falls, the faster your principal erodes, and in the end, even paying fees becomes a joke.
But this doesn't mean mechanically chasing rallies and selling on dips. Skilled traders understand the concept of "reading the market"—when the coin's price hits a key support level, trading volume shrinks into a straight line, and MACD shows a bullish divergence, is that "bearish"? No, it only indicates others are bottom-fishing while you're panicking. This is called "waiting for a reversal at the bottom," which is a completely different matter.
Contract trading is even more particular about this. Yesterday, a certain meme coin skyrocketed like crazy; today, a big red candle directly breaks through all moving averages, with no sign of a rebound. Are you still holding long positions and waiting for liquidation? The smart move is to decisively shift to short. The reverse also applies—if a coin has fallen for half a month but suddenly releases a huge bullish candle smashing through resistance, with volume stacking up more fiercely than during halving, are you shorting at this moment? While others are going all-in, you become the most eye-catching trader on the street.
In essence, "selling on dips and buying on rallies" is a high-level way of "reading market sentiment." It's like playing mahjong—if the player next to you has already changed the wind, you're still playing with the tiles, and that's too amateur. When the market signals a rally, follow it; when it signals a dip, retreat—this is called going with the trend, and it's the hard truth for minimizing losses and maximizing gains.
Don't stigmatize this tactic with the label "fickle." The ones who get their scalp cut are often those who stubbornly refuse to acknowledge emotional shifts; those who manage to recover fees are the ones who flexibly adapt and seize market volatility. The crypto world never nurtures stubborn minds, only those who are adaptable. Mastering this methodology is the real secret to losing less and earning more.