How to trade coins?

**A few days ago, I had tea with a Cryptocurrency Speculation pro and he shared his investment experience: he entered the crypto world with 400,000, went through losses and was left with only 80,000, but now his assets have exceeded tens of millions. The key to changing his destiny lies in perseverance in learning and improving cognition. He summarized five valuable insights, hoping to inspire everyone!

1. Don't rush to stop loss

When the market plunges in the morning, do not rush to stop loss. This is usually an overreaction to the negative news from the night before. You can patiently wait for the market to recover and reverse. When the market rises sharply at the end of the day, be cautious about chasing the rise, as some major players may be testing the market or luring buyers to sell and accumulate. It is very likely that the market will open lower the next day and suppress the capital inflow.

2. Making Good Use of Trading Volume

Trading volume is an important tool to judge the market trend. If there is a rise in volume with a decrease, it indicates that the main force is extremely strong; while a decrease in volume with a decrease means that panic selling has not yet occurred, the freezing point has not been reached, and the market may continue to decline.

3. Understanding Sector Structure

Learn to analyze the top structure of sectors. Typically, sector trends consist of five waves: the first wave triggers follow-up buying, the second wave washes out and adjusts, the third wave is the main rising wave, the fourth wave shows complex divergences, and the fifth wave is the lifting and selling wave. Note that market changes are diverse, and the five waves are not always present. When the leading stock stagnates, the rebound trend may have already peaked.

4. Follow the dynamics of the sector

When the price of Bitcoin rises rapidly, some altcoins in certain sectors often experience significant increases, which may trigger a reversal in Bitcoin. Just observe whether the leading stocks have stopped falling and started to rise, and the index will also rebound accordingly.

5. Focus on one strategy

**Especially for newcomers, it is recommended to focus on studying a trading strategy and master the skills. Greed leads to loss, and lack of expertise in learning makes it easy to be taught by the market. Do not switch trading modes casually. Study patiently, expand more skills only after achieving stable profits, and then integrate them more effectively.

As an investor, while pursuing high returns, it is essential to carefully assess the risks and invest rationally.

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