Four Iron Rules of Swing Trading: Survival Rules for Old Investors
In the crypto world, do you often encounter situations like this—just after you stop loss, the price rebounds, and when you want to take profit, it spikes? Today, I will share four swing trading rules that I have learned through real money, specifically for all kinds of dissatisfaction.
First Iron Rule: Only Act at Key Positions
Look for those positions where the candlesticks repeatedly rub against each other: previous highs and lows, Fibonacci retracement levels, weekly EMA. These places are like trenches on the battlefield; both bulls and bears must have a battle here. We should wait behind the advantageous side and charge forward when they engage. Remember: if it breaks, back down; don’t throw a tantrum with the market.
Second Iron Rule: Know Your Math for Taking Profit
Don’t always aim for ten times your investment. Calculate your stop loss distance clearly; a risk-reward ratio of 1:2 is the baseline. The previous high of BTC and the integer levels of ETH have a lot of profit-taking orders lurking; placing orders in advance is more reliable than waiting for miracles.
Third Iron Rule: Understand Market Sentiment
Bitcoin is a volatile warrior, swinging wildly; altcoins are like drugged youths, either playing dead or going crazy. Trade breakouts during trends, and buy low and sell high during consolidations—don’t talk about value investing in the later market.
Fourth Iron Rule: Triple Confirmation Before Betting
Use moving averages to gauge direction, volume to check authenticity, and candlestick patterns to time your trades. When all three indicators give you a signal, your win rate is like a trading exchange in a bull market—guaranteed profit.
(Practical Case)
For example, right now Bitcoin is bouncing around the $60,000 mark. First, check if the weekly chart is in an uptrend, then look for areas of heavy buying pressure on the 4-hour chart. Wait for a strong bullish candle to break the previous high, and when it retraces without breaking, then go long with a stop loss below the recent low. Simple? But 90% of people fail due to lack of patience.
Remember: Good trading is like waiting for a package; you know it will come, but there’s no need to check the tracking every minute. The most expensive tuition in the crypto world is FOMO, and the most profitable skill is waiting.
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