Profit retracement principle: Buy a currency, after buying, if you earn more than 10%, then we should start to implement the principle of capital protection (if it falls to the purchase price later, sell it immediately and unconditionally). If you earn about 20%, then you must make at least 10% profit before selling. In order to maximize profits, when you earn 20%, you must not sell it unless your profit falls to 10%, unless you have the technology to determine the stage high point, otherwise you will not sell it. Similarly, if you earn 30%, you must sell it unconditionally if it falls to 15%. This principle is that there is no technical judgment of the high point, and profit retracement helps you roll profits.
Capital preservation principle: When buying a certain cryptocurrency, if it gradually loses 15% after your purchase (this number varies from person to person; redemption suggests that 15% is the most suitable), you should cut your losses and exit. This stops the loss in a timely manner; if it rises again later, that's fine. After all, the entry point was incorrect, which was a wrong trade. Mistakes come with a cost, and that cost is the loss. Losses help us learn a lesson, and remembering these lessons will prevent us from chasing after losses. We must ensure that our mistakes do not turn into pain. Therefore, setting a stop loss when opening a position is a very necessary condition in futures trading.
Original price recovery principle: The principle of recovering at the original price works like this: If you sell and then it drops, and you still have confidence in it, you should buy back the same amount of cryptocurrency. Remember, it’s the same amount because you sold at a high price, so now you have the same quantity of coins but with extra funds. If you sell a coin, it drops, and you don't buy it back, and then it rises back to your selling price, you must buy it back unconditionally. This just wastes transaction fees but can avoid a lot of missed opportunities. This principle can be repeated with the capital preservation principle: if it rises back, recover at the original price; if it drops again, then apply capital preservation. If you continue to operate this way multiple times, you won’t need to focus on the current price of this coin, proving that your chosen price point is not a support or resistance level, which can easily break. Choose another price point. In short, short-term trading should follow some basic principles, especially noting that: quick exits and entries do not mean frequent buying and selling; chasing hot trends does not mean blindly choosing; taking profits does not mean being timid; staying in cash and observing does not mean staying away from the cryptocurrency market; and trading points should not insist on the lowest or highest prices.