Let me speak frankly with my fellow crypto enthusiasts: Short-term cryptocurrency trading doesn't require obsessing over all those fancy indicators!
I've compiled six key principles I've mastered through practical experience. Remember them and follow them; it's far more reliable than blindly following trends and making haphazard trades.
**First Principle:** Wait for new highs during high-level consolidation; be wary of breakouts during low-level consolidation. Newcomers shouldn't rush in just because of high-level consolidation. The major players are likely accumulating strength, and as long as key support levels aren't broken, the probability of further gains is higher. However, never try to buy the dip during low-level consolidation; you're likely to fall into a "new low trap." Wait for the trend to become clear before taking action to avoid getting trapped.
**Second Principle:** Don't act rashly during consolidation. Price fluctuations during consolidation are even calmer than a still lake. Rushing in will either trap you or leave you with insufficient profits to cover transaction fees. Be patient and wait for the price to break through the upper boundary of the consolidation range or fall below the lower boundary, until the trend is clear, before making a move. This will significantly increase your chances of success.
**Third Principle:** Look for buying opportunities on down days; look for selling opportunities on up days. Don't panic and sell at the sight of a down day or frantically chase after an up day. This is typical of chasing highs and selling lows, and nine times out of ten you'll lose money. As long as the overall trend isn't broken, a down day is actually a "discounted entry opportunity," while an up day should prompt you to consider "whether to take profits." Focus on support and resistance levels and trade in the opposite direction to avoid most of the risk.
Fourth point: The speed of the decline determines the rebound. A sharp drop often leads to a strong rebound, while a slow decline results in a slow recovery. Remember this rhythm, and when trading rebounds, you'll know whether to wait for a rapid drop to buy the dip or observe a slow decline, avoiding misjudging the timing.
Fifth point: Pyramid-style position building. Never go all in at once! For example, if you plan to buy 1000 coins, buy 200 at a relatively high price, add 300 if it drops 5%, and add the remaining 500 if it drops further. Buying more as it falls lowers the average cost and avoids the passive situation of "buying more as it rises and panicking at the first pullback."
Sixth point: After a rise or fall, there will inevitably be sideways movement. After several days of consecutive price increases or decreases, a consolidation period is inevitable. Don't rush in for fear of missing out; consolidation phases can easily trap investors. Wait for the consolidation to end and a clear direction emerge—either it will continue to rise or it will reverse and fall—before taking any action; this is the safest approach.
I can patiently explain to you how to plan your funds, seize opportunities, and control your pace, saving you years of wasted time. Sometimes, it all comes down to just a few words of practical advice.