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Cryptocurrency trading isn't as complicated as it seems. I've been in this circle for over ten years, and today I want to share some particularly practical experiences.
**The Easiest Pitfalls During Sideways Markets**
When prices fluctuate back and forth at high levels, many people mistakenly think it's a signal to buy in. Actually, that's wrong—big players are brewing their next move right here. As long as key support levels aren't broken, there's still hope. Conversely, during low-level sideways consolidation, don't rush to buy the dip, because new lows might just be waiting for you.
The smartest choice during sideways periods is to do nothing. Wait until the price truly breaks above the upper boundary or falls below the lower boundary; once the direction is clear, then enter the market. This approach significantly increases your chances of success.
**Gradual Position Building Is the Key**
Suppose you plan to invest 1000 coins. My method is to first allocate 200 coins at a relatively high level to test the waters. If the price drops by 5%, then add another 300 coins. If it continues to fall, top up the remaining 500 coins. Buying more as the price drops helps lower the average cost and avoids the risk of being fully invested and caught off guard during a correction.
**Price Movements Have Patterns**
There are two phenomena worth paying close attention to. After a sharp decline, a quick rebound often follows. Conversely, a slow decline tends to have a weaker rebound—if you grasp this rhythm, you'll know when to step in for a bottom-fishing attempt and when to stay calm and watch. Also, after a series of big gains or losses, the market usually enters a consolidation phase, which is the easiest time to get trapped. Wait until the sideways movement completes and signals become clear before taking action—that's more prudent.
**Mindset Management Determines Final Success or Failure**
Panicking and selling when seeing a decline, chasing after gains when prices rise—these are classic emotional reactions. As long as the overall trend remains intact, a bearish candle can be an opportunity to position; when a bullish candle appears, consider taking profits. Keep a close eye on support and resistance levels, learn to think in reverse, and you'll often avoid big pitfalls.
How to allocate funds, when to act, and how to control the rhythm—these details require continuous exploration and refinement. Adjust and optimize through practical experience, and eventually you'll develop your own trading system.