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In the complex and ever-changing digital money market, a simple and effective strategy can often help investors avoid many traps and gradually accumulate profits. This approach mainly consists of two core elements: adhering to fundamental principles and mastering practical skills.
First, let's keep in mind three fundamental principles:
1. Avoid chasing prices: Real investment opportunities often arise during market downturns. Develop the habit of buying when others are fearful and staying cautious when others are euphoric. Enter the market in batches during declines and remain calm during rises to avoid the risk of being trapped at high positions.
2. Don't cling to specific price levels: Market fluctuations are difficult to predict precisely, and sticking to a specific price may cause you to miss good opportunities. Stay flexible and focus on the overall trend rather than specific numbers.
3. Use all funds with caution: While using a full position may bring higher returns, it also significantly increases risk. Keeping some cash not only allows you to average down during market declines but also enables you to seize better opportunities in a timely manner.
Secondly, for short-term trading, the following six practical tips are worth remembering:
1. Wait for a clear trend during the consolidation period: After high-level consolidation, there is often a new high, while after low-level consolidation, there may be a new low. Do not speculate on the direction during consolidation; wait for a clear trend to emerge before taking action.
2. Maintain a watchful stance during the consolidation period: Most investors' losses often stem from frequent trading during the consolidation period. During this time, patience and restraint are key.
By following these principles and techniques, even novice investors can steadily move forward in the Digital Money market and reduce unnecessary losses. Remember, in this market, simple and steadfast strategies are often more effective than complex maneuvers. Continuous learning, staying vigilant, and always maintaining a sense of awe towards the market will be important guides on your journey in Digital Money investment.