#数字资产市场观察 Crypto Assets Trading Guide for Newbies: 8 Practical Rules to Help You Avoid Common Traps

There are always complaints in the market that the principal keeps decreasing with trading? Today, I will share some trading experiences summarized from practice. Following these can help you avoid most of the Newbie pitfalls.

First, let's talk about mindset: when trading coins, technology is one aspect, but psychological warfare is even more critical. Being impulsive in increasing positions when the price rises and panicking without a plan when it falls—this emotional trading is the root of losses. Stay calm and don't let greed and panic lead you by the nose.

Don't hold on stubbornly when you're trapped. Many people refuse to admit their mistakes after being trapped, fantasizing about turning back to profit immediately, but the more they average down, the bigger the hole becomes. The correct approach is to stabilize the situation first; protecting your principal is more important than anything else. Once the market sentiment recovers, opportunities will naturally arise.

Pay attention to the market's "quiet period." On the surface, it may seem calm, but in reality, it could be brewing a major trend. Especially during sudden periods of low volatility, it often indicates that significant fluctuations are about to occur, whether it's a sharp rise or a sharp drop.

About buying and selling timing: Buy on the dip, not on the rise; sell on the rise, not on the dip. Following market sentiment makes it easy to get reaped; true experts think in reverse. Also, don't rush to sell when it doesn't spike, and don't rush to buy when it doesn't plummet—when the market is in a sideways movement, getting antsy can often lead to losses.

There are two key points to note from a technical perspective: after a significant rise, a correction is inevitable. When the K-line shows a converging triangle pattern, it is usually a signal of a trend reversal; understand the support and resistance levels. When prices are rising, look at where the support is, and when prices are falling, look at where the resistance is. This way, your actions will not be blindly chasing after gains or cutting losses.

The most important rule: never go all in! The market changes rapidly, and you must leave yourself a way out. Taking profits is always wiser than going all in and risking everything—surviving is the key to continuing to make money.

These points are not theoretical deductions; they are lessons learned from real money being put on the line. Save this post and take a look at it before trading; it might help you avoid a big loss. Share in the comments what pitfalls you have encountered?

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