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If you want to make money in the crypto world, you don't need to overcomplicate things. Some of the seemingly simplest methods can actually help you preserve profits in the long run. In summary, remember the "three forbidden zones" in trading.
First, don't be the bagholder. When others follow the trend and chase the highs, you need to stay rational. True opportunities appear when others are afraid—that's when you should buy low. When everyone is frantically selling, that's when you should be taking profits. Develop the habit of buying during dips, and profits will naturally flow in.
Second, don't be a gambler who places large orders blindly. Leveraged trading can wipe out your capital with just one mistake, and such risks are simply not worth taking.
Third, never hold a full position. Going all-in pushes you into a desperate situation. The market offers many opportunities, and being fully invested leaves no room to respond flexibly. When the trend reverses, you won't even have a chance to adjust.
Once you grasp these principles, take a look at some practical methods for short-term trading.
K-line patterns at high and low levels can tell you a lot. After consolidation at high levels, prices may surge to new highs; after consolidation at low levels, prices often hit new lows. Wait until the trend direction is confirmed before acting—this significantly reduces risk.
During sideways trading, controlling your hands is especially important. Most losses come from overtrading during consolidation. No trading during sideways periods means your principal remains your wealth.
The yin and yang of candlesticks also matter. Buy when the candle closes bearish (yin), sell when it closes bullish (yang). This seemingly simple logic can help you stabilize arbitrage amid volatility.
The speed of a decline determines the strength of the rebound. Slow declines often lead to gradual rebounds, while sharp drops are usually followed by quick recoveries. Follow the rhythm, and profits are within reach.
The safest way to build a position is the pyramid method. Buy more as prices fall, lower your average cost, and accumulate profits—this is the core idea of value investing.
Finally, pay attention to changes during consolidation. After sideways movement, a trend will emerge. If there's a downward breakout from high-level consolidation, exit your position; if there's an upward breakout from low-level consolidation, add to your position. Adjust flexibly, and wealth will flow continuously.
Ultimately, crypto trading boils down to these principles. Remember these rules and methods, and you can also achieve steady profits in the market.