Simple method of trading

Cryptocurrency trading is not as easy as we think. It turns out that we take trades very easily and we do not have a good idea of when to get out or when to sell or when to buy. As a result, we cannot profit as much from the trade. If you follow some rules, you will gradually build wealth. For this, the rules must be followed correctly.

First of all, you have to choose good quality coins. If a strong coin falls for 7-10 consecutive days after a good run, then pay attention, it may be ready for a bounce. But the important thing here is to make sure whether the coin is a good or strong project. Because there are many meme coins that constantly go down. Secondly, if a coin keeps rising for 2 consecutive days, it is often wise to reduce your position and lock in the profit. We should remember that no coin increases constantly. So in this case, we should enjoy that profit when we make a profit. Otherwise, you may have to take a huge loss.

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If a coin jumps more than 7-10% in a day, it may come back the next day. Sometimes we can see such ups and downs in the market due to various news. So we should be aware in this case. Enter only after a big bullish phase ends and the market resets. If a coin is calm for 3 days with low volatility, if nothing happens, watch it for another 3 days, it may be time to change. But one thing to remember is that before investing in any coin, you must review the candlesticks of that coin well. Do not invest in any coin on speculation. If a coin cannot recover the previous day's cost level, exit quickly to avoid deep losses.

The trend is often continuing if 3 coins are pumped, expect more action; if a coin has been rising for 2 days, try to buy the dip as the fifth day often brings a good selling opportunity. Volume is important. If the price breaks lower with strong volume, take note; but if the volume increases to a higher level and the price stalls, it is better to exit. Trade coins only in uptrends to increase your success rate.

Clock moving averages: a 3-day MA turning up shows short-term strength, 30-day for mid-term, 80-day for a strong uptrend and 120-day for long-term momentum. Don’t think that small capital means using the right approach, it is important to stay calm, stick to your strategy, and wait patiently for a solid setup. And most importantly, don’t trade full-time or with borrowed money. Stay smart and protect your mental and financial health.