$BTC Transaction Cycle: Determine holding period (e.g., several days to weeks), short-term fluctuations are suitable for range or breakout strategies, while medium to long-term trends are more suitable for trend following.
• Risk Tolerance:
◦ Conservative: Prefer range trading, operate when clear support and resistance levels are established, with a small stop-loss range and low volatility risk.
◦ Aggressive: Can attempt breakout strategies, chasing trend breakout points, but must accept stop-loss losses from failed breakouts.
II. Match Personal Trading Ability and Cognition
• Technical Analysis Ability:
◦ Proficient in moving averages and trend line analysis: Use trend following strategies (e.g., moving average golden cross/death cross signals).
◦ Sensitive to support and resistance levels: Choose range or breakout strategies, combined with trading volume to assess breakout validity (e.g., a breakout with increased volume at resistance is more reliable).
• Time Investment:
◦ Unable to monitor the market in real-time: Trend following strategies are more worry-free and do not require frequent operations;
◦ Able to monitor the market frequently: Can capture short-term fluctuations in range trading or immediate entry opportunities after breakouts.
III. Flexibly Choose Based on Market Environment