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The method to steadily capture most profits in the crypto space is actually not complicated. In simple terms, it’s about repeatedly practicing those fundamental principles. Many people find it difficult because they haven't truly applied these in actual operations.
Let's start with three absolute pitfalls that must be avoided.
**First: chasing the pump.** This is the most common self-destructive behavior. When others are frantically buying in, you hesitate; when others are fearful, you become greedy. These two statements are easy to say but hard to do. Developing the habit of positioning during dips is far more reliable than chasing highs out of envy when prices rise.
**Second: placing sell orders to suppress price.** Many people get burned by this trick. Once you place a sell order to suppress, you get trapped in a passive position, and every subsequent step becomes even more passive.
**Third: full position (going all-in).** Going all-in is like locking yourself in with no room to maneuver. The market offers many opportunities, but missing them because you're fully invested is too costly. Keeping some idle funds often proves useful at critical moments.
Next are six core tips for short-term trading in cryptocurrencies. Mastering these can save you a lot of detours.
**1. The direction of consolidation is crucial.** Be cautious after a high-level consolidation; it’s easy to make new highs but also prone to slipping. Low-level consolidations often lead to new lows. Don’t rush to predict; wait until the trend reversal becomes clear before acting.
**2. Don’t move during sideways trading.** This is the simplest yet most overlooked principle. Frequent operations during sideways phases usually just waste your capital, with no exceptions.
**3. Candlestick patterns speak volumes.** When the daily candle closes bearish, consider buying; when it closes bullish, look for selling opportunities. Following the trend is always correct.
**4. The pace of decline determines the rebound magnitude.** When the decline slows down, rebounds tend to be gentle; if the decline accelerates, rebounds are often fierce.
**5. The pyramid averaging method is timeless.** The more the price falls, the less you add to your position, effectively reducing your average cost. This is also the simplest truth of value investing.
**6. After rises or falls, there is always sideways movement.** After a complete cycle of rise and fall, the coin is likely to enter sideways trading. Don’t fully clear your position during high sideways phases, nor rush to buy everything during low sideways phases; once consolidation shows signs of a trend reversal, sell immediately at the high, and follow the new trend to adjust your operations.
These principles may seem unremarkable, but very few people can consistently follow them. The simpler things are, the easier they are to overlook. Conversely, complex analysis methods tend to seem more sophisticated. In reality, stable profits are achieved just like this.