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Individual users can earn up to 1,000 LOT — share from a total prize pool of 1,000,000 LOT!
🏃 Join now: https://www.gate.com/campaigns/1294
Complete deposit and trading tasks to receive random LOT airdrops. Exclusive Alpha trading task await!
Periods of significant market fluctuation are an excellent opportunity to test the quality of digital assets. When the overall market is declining, if a certain coin only experiences a slight pullback, it often indicates that there is strong support behind it. Such assets are worth holding and typically yield returns.
For novice traders, a straightforward strategy can be adopted: in the short term, operate according to the 5-day moving average, hold above the moving average and exit if it breaks; in the medium term, refer to the 20-day moving average, maintaining a similar logic. The key to successful trading lies not in the complexity of the method, but in the consistency of execution. By consistently practicing a method that suits oneself, most people can achieve good results.
When a major upward trend is established and there is no obvious increase in volume, one can enter the market decisively. When the rise is accompanied by an increase in trading volume, one should hold the position. When a decline occurs with a decrease in trading volume and the trend line remains intact, one should also maintain the position. However, if the decline is accompanied by an increase in trading volume that breaks the trend line, one should quickly reduce the position size.
If there is no significant fluctuation within three days after short-term trading, consider exiting; if the price drops instead of rising after purchase and the loss reaches 5%, you should stop loss unconditionally. For coins that have fallen more than 50% from the peak and have been declining for about 8 consecutive days, they are usually in the oversold range, and the opportunity for a rebound is approaching, so you can follow up appropriately.
Investment in digital currency should focus on market-leading varieties, as they perform strongest when rising and are most resilient when falling. Do not be afraid to enter the market just because the price has risen, and do not blindly buy just because the price has dropped significantly. Strong varieties tend to remain strong, and when trading short-term, one should understand to buy at relatively high levels and sell at even higher levels.
It is crucial to follow the trend; the buying price does not have to be the lowest, but rather the most suitable. A cheap price does not necessarily bring advantages, as it is difficult to determine the bottom during a downtrend. Abandon assets with limited potential and grasp the dominant trend in the market.
Do not let short-term profits cloud your judgment; sustained profitability is the real challenge. After each trade, you should analyze carefully, distinguishing between luck and real skill, and establish a trading system that suits you to achieve long-term stable returns.
Avoid unnecessary trading activities. When there is no full grasp, maintaining a flat position is also a wisdom. The primary consideration in trading should be fund security rather than profit. Successful trading is not about the frequency, but about the stability of the win rate.