1. Properly manage the funds you have, which is very important. For example, if you have 100,000 USDT, divide it into 5-6 portions, using 20,000 USDT for each trade.
2. Use one portion of capital to buy a coin at the current price.
3. If the coin price drops by 10%, buy another portion.
4. When the coin price rises by 10%, sell a portion.
5. Repeat the above steps until all funds are used up or all coins are sold.
Under this strategy, once you buy, you need not worry even if the coin price drops because we will continue buying as the price declines.
In fact, if all five portions of capital are used up, the coin price has already dropped by nearly 50%. Unless there is a massive market crash, the price will not fall that quickly. From a profit perspective, each sale can bring a 10% profit.
For example, with a total capital of 100,000, if you use 20,000 each time, you will earn 2,000 each time you sell. However, this strategy also has certain problems.
A 10% volatility is relatively large and may lead to trades not being executed easily, requiring longer wait times. This can affect the efficiency of capital usage, as funds may remain idle for long periods or be continuously occupied by certain coins.
However, this issue can be resolved by reducing the volatility range.
For example, you can choose to buy stable coins and invest in Binance financial products when funds are idle. This way, you can earn additional income while waiting for price changes.
If you want to treat trading coins as a second source of income and are willing to spend time growing and learning, then you should not miss this article. Read it carefully; every point is the essence of the stock market. It can be said that whether in a bull market or a bear market, these rules will be helpful to you!
1. A sharp decline is a touchstone for evaluating quality coins. If the market crashes and your coin only slightly drops, it's clear that the major holders are supporting the price and refusing to let it fall. Therefore, you can hold such coins with confidence; rewards are certain.
2. Once a primary upward trend is established without significant volume, decisively enter. Hold coins during volume increases, and if there is a decrease in volume without breaking the trend, continue to hold. If volume drops and the trend is broken, quickly reduce your position.
3. After buying short-term, if there is no fluctuation for three days, sell. If the price drops after buying, cut losses unconditionally at 5%.
4. If a coin has fallen 50% from its high and has dropped for 8 consecutive days, it has entered an oversold channel, and a rebound is imminent, you can follow up.
5. When trading coins, focus on leading coins only. Do not engage with mediocre ones. Leading coins rise the most during uptrends and are the most resilient during downtrends. Do not be afraid to get on board; trading coins is often counterintuitive. Do not buy just because they have fallen significantly, and do not refrain from buying because they have risen a lot. The more you hesitate to buy, the more they will rise, and the more you dare to buy, the more they will fall. The strong will remain strong; when trading leading coins, the key to short-term trading is to buy high and sell even higher!
6. Embrace the trend and follow the market. The price at which you buy is not about being the lowest but about being the most appropriate. You will not gain an advantage just because the price is cheap; since a downturn does not signal a bottom, abandon junk coins and let the trend be your guide.
7. Do not let profit cloud your judgment. Remember, the hardest thing in the world is how to sustain profits. You must seriously review your trades to determine whether it was luck or skill. A stable trading system that suits you is the key to sustained profits.
8. Do not trade just for the sake of trading. What does this mean? It means that if you do not have enough certainty that this trade will be profitable, do not force yourself to open a position. Being in cash is an art; those who can buy are students, those who can sell are masters, and those who can stay in cash are the ancestors. The primary consideration in trading is not profit but capital preservation. The measure of trading is not frequency but success rate!
9. In fact, in the speculative market, being adaptable is the worst approach. Use your fixed trading system, and let it remain unchanged in the face of countless changes. It is not the number of methods you use that matters, but rather that you use one method a thousand times. Staying put is the best defense; often, the times when you are most reluctant to let go are when you make the most mistakes. Take this advice seriously!
