After many years in the crypto world, I have summarized 5 short-term trading insights! Understand them to easily grasp the market rhythm!
1. Consolidation Market: Be patient and wait for signals, don’t be reckless. When the price is oscillating at high or low levels, don’t rush to take action! Consolidation at high levels often hides opportunities for a breakthrough to new highs, while lingering at low levels may brew a new round of decline. Like a hunter, lie in wait, and decisively act only when the market has a clear direction.
2. Sideways Phase: Keep your hands to yourself, cash is king. The sideways phase is known as a “disaster zone” for retail investors! 90% of ineffective trades occur during this time. Remember, not trading is the best trading; patiently wait for the market to break the deadlock, then enter gracefully.
3. Anticipating Rebounds: See through the strength of the decline to accurately catch the rebound. A decline is like a ball dropping to the ground; the heavier it hits, the stronger the rebound! By observing the speed and strength of the decline, anticipate the rebound intensity, and accurately grasp the starting point like a surfing expert.
4. Positioning Strategy: Pyramid-style phased entry to control risk steadily. Trading experts understand “phased planting”! Use the pyramid positioning method to start with a small amount for testing, then gradually increase the position. This not only reduces costs but also diversifies risks, building a solid foundation for trading.
5. End of Trend: Wait for reversal signals, don’t be an unwitting bag holder. After significant rises or falls, don’t rush to act! Don’t chase prices at high levels or bottom fish at low levels; patiently wait for clear trend reversal signals to seize the best exit opportunity.
Remember: Patience > Skill, Stability > Aggressiveness!