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The easiest way to make money in the crypto world often looks the most inconspicuous. Today, let's talk about those "stupid" but effective trading ideas. This logic is enough to steadily grow your account.
**Three major taboos, one mistake can wipe out your account for a year**
First, do not chase highs or sell lows. This is a common flaw among 90% of retail investors—FOMO entering during a sharp price surge, buying at high levels and getting trapped. True trading experts, on the other hand, wait for bloodshed in the crypto market. When you're afraid to even open your exchange app, that's actually a signal to start positioning.
Second, don't go all-in on a single coin. It's no different from a gambler betting on lucky numbers—choosing wrong can have devastating consequences. Always keep at least 30% cash reserves, so you have the ability to buy the dip during a major decline instead of just watching helplessly.
Third, don't go all-in with full position. The crypto market never lacks opportunities; what’s truly missing is flexibility. When you're fully invested, you lose all options and can only passively endure market fluctuations. Position control is the survival rule of top players.
**Six practical rules for short-term trading**
Consolidation will inevitably lead to a trend change, but blindly following the trend before the change often leads to pitfalls. Sideways movement at high levels may be a false breakout; bottoming out at low levels could be brewing a crash. When there are no clear signals, staying on the sidelines is the safest choice.
The most dangerous zone is the sideways range. Data shows that 80% of liquidations happen during sideways periods because it’s when people are most likely to lose patience and place reckless orders.
Contrarian thinking is key: don’t panic when you see a big bearish candle; instead, see it as an opportunity. Take profits decisively when the price surges upward. This is contrary to most retail investors’ instincts, but that’s what makes it effective.
Rebounds after a sharp decline are often more violent than slow declines. Although waterfall drops are terrifying, rebounds can be even more aggressive. The key is to survive until that moment.
When building a position, use the pyramid principle: add 10% each time the price drops by 10%. This effectively lowers the average cost.
The last point is the decisiveness to clear positions during trend reversals. When a rising coin starts sideways, consider taking profits; during a crash, don’t expect a reversal while sideways. Quick stop-losses are more important than waiting.
The core is actually simple: manage risk, stay patient, think contrarily. These methods may seem "stupid," but because most people can't do them, they end up being profitable.