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In the fast-changing Crypto Assets market, mastering some key trading strategies can help investors improve their success rate. Here are a few trading insights worth following:
1. Price dynamics and trading timing: When the price breaks new highs after consolidating at a high level, it may be a good time to reduce positions or exit. Conversely, if a new low occurs after consolidating at a low level but quickly rebounds, it may signal a buying opportunity.
2. Market Environment and Counter-Trend Market: In an unfavorable market environment, coins that trend sideways or rise slightly against the trend may perform better. In a favorable environment, coins that trend sideways or drop slightly against the trend should be approached with caution.
3. Position Management Strategy: It is recommended to increase the position when the coin price breaks through the previous high, rather than averaging down during a continuous decline. It is important to learn to cut losses to let profits continue to grow.
4. Bottom Rebound Characteristics: After identifying the bottom, a "buy two, sell one" rising pattern usually appears. In this case, it is important to maintain confidence, as there may be a larger increase in the future.
5. Investor tier classification: top investors will follow the overall sector trend, followed by individual coins, and then technical indicators. Investors who rely solely on luck often perform the worst.
6. The Essence of Technical Analysis: True technical analysis should be based on trading volume and price, as most indicators are derived from these two factors.
7. Key levels in trends: In an uptrend, one should follow the support levels, while in a downtrend, attention should be paid to the resistance levels. In the corresponding trend, these key levels often provide better trading opportunities.
These insights can help investors better understand market dynamics and develop more effective trading strategies. However, the Crypto Assets market is high-risk and highly volatile, so investors still need to be cautious when trading and implement proper risk management.