Newbie Confusion

Practical Guide: The Trio of Choosing Coins, Trading, and Mindset!

Many people often ask me how to select coins and trade in a highly volatile market. Today, I will systematically organize these questions into a written form, hoping to be helpful to everyone.

First: Choosing Coins — Safety and Stability Determine Longevity

Many newcomers are attracted by stories of rapid surges of concept coins and meme coins after entering the market, but they overlook the potential risks. My advice is:

When choosing coins as a beginner, always prioritize mainstream options, such as Bitcoin, Ethereum, and other major coins. These have high liquidity and strong consensus, making them relatively stable even during intense market fluctuations, and less likely to go to zero.

Caution is even more necessary when selecting altcoins! Among thousands of altcoins, prioritize those with a longer existence, high project transparency, and solid team backgrounds—“established altcoins.” These coins have withstood market cycle tests and are more resilient than new projects. Remember, your primary goal is not to get rich overnight but to survive in the market.

Second: Trading — Short-term vs. Long-term Timeframes

The root of many traders’ losses lies in confusion over timeframes.

If you are doing short-term trading, don’t pay attention to daily, weekly, or monthly charts. These long-cycle indicators are almost meaningless for short-term operations and may even mislead you.

Short-term trading should focus on smaller timeframes, such as 15-minute to 1-hour charts. These periods are more sensitive to short-term price fluctuations and entry signals, fitting the fast-paced nature of short-term trading.

But if you are a long-term investor, the situation is completely different—you should ignore short-term noise and focus on weekly and monthly trends and fundamental analysis.

The key is: clarify your trading strategy and choose the timeframes that match it. The logic of short-term and long-term trading is entirely different and should not be mixed up.

Third: Risk Control — Stop-Loss is the Starting Point of Trading

“Stop-loss is a must!” — these four words should be engraved in your mind.

No matter how confident you are in a trade, the market always has unpredictable black swan events. Stop-loss is not admitting failure but protecting your capital and ensuring you have a chance to recover after mistakes!

Set stop-loss levels based on technical analysis (such as support and resistance levels) and your risk tolerance. A simple rule is: a single loss should not exceed 1-2% of your total funds.

Trading without a stop-loss is like driving without a seatbelt—maybe nothing happens a hundred times, but one accident could be fatal.

Fourth: Mindset — Investment is a Journey of Self-Discipline

Technical skills are easy to learn, but mindset is hard to cultivate.

In the market, greed and fear are amplified infinitely. FOMO (Fear of Missing Out) can cause you to buy at the top, while panic can lead to selling at the bottom. To overcome these human weaknesses:

1. Make a plan and stick to it: clearly define entry points, take-profit points, and stop-loss points before entering a trade, avoiding emotional decisions during trading.
2. Accept imperfection: don’t chase the lowest buy or the highest sell; just take what the market gives.
3. Be patient: most of the market time is oscillation and waiting; good opportunities require patience.
4. Regularly review your trades: regardless of profit or loss, review your trading records periodically to identify areas for improvement.

Remember: the market is always right; only we can be wrong. Stay humble, keep learning, and this is the key to long-term survival!

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