In the cryptocurrency market, mastering effective short-term trading techniques is key to improving trading success rates. Here are some proven short-term strategies and mental techniques suitable for the current market environment:
1｜Five-Day Line Strategy: The simplest and most practical short-term technique
The five-day line is an extremely important reference indicator in short-term trading. Mastering the use of the five-day line is one of the basics of short-term and wave trading. Among most retail investors who lack insider information, losses are the norm, primarily due to blindly chasing rises and selling on dips, and lacking a stable system strategy. Short-term trading is more suitable for new coins, allowing for quick rhythm changes; medium to long-term or regular investment strategies are recommended to focus on mainstream coins such as BTC and ETH.
2｜Lotus Emerging from Water Pattern: Capture the bottom breakout point
When a token consolidates for an extended period and then strongly breaks through the 60-day moving average (MA60) on a certain day, it usually indicates that the main force has completed its position and that a rally is imminent. This 'lotus emerging from water' type of movement is often an important signal for short-term buying. Especially in the rebound phase after a new token breaks its issue price, if the fundamentals are good, the team is reliable, and there is hot support, it is an ideal time to buy the dip and speculate on a rebound.
3｜15-Minute Candlestick Trading Method: The way to control short-term rhythm
If the trading cycle mainly lasts from 1 to 3 days, the 15-minute candlestick can be used as the primary analysis tool, combined with the 5-minute (to capture buying and selling points) and 60-minute candlestick (to judge trends) to form multi-period resonance judgment; if the trading cycle is longer than 1 week, it is necessary to combine daily and weekly operations. The key is: during a market downturn, be patient in stock selection and wait for stabilization; only after stabilization can one seize short-term starting opportunities.
4｜Project Crowdfunding and Psychological Traps: Dreams coexist with risks
In the past, there were many cases of achieving tenfold or hundredfold returns through participation in crowdfunding, but nowadays, the quality of most projects is uneven, and one needs to be wary of being swayed by FOMO (fear of missing out). Many people harbor the fantasy of 'getting rich overnight,' investing far beyond their capacity, and ultimately being 'harvested' by the project parties. Maintaining rationality and controlling positions reasonably is a sound approach.
5｜Mindset Development: Look less at predictions, focus more on yourself
The cryptocurrency market is highly volatile, and emotions are easily influenced by external factors. Remember: any prediction carries uncertainty, and once a trend is formed, fluctuations are often collective. Do not rely too heavily on others' analyses, as everyone's perspective is different; the key is to establish your own trading system. Also, pay attention to your health, as staying up late to monitor the market and feeling anxious will only lead to more chaotic trading.
6｜Short-Term Profit-Taking Mindset: Take profit when it's good, secure the gains
Short-term trading emphasizes quick entry and exit, and setting a reasonable profit-taking point is crucial. Experienced traders will seize the opportunity of an inertia rise during the initiation phase of a token and decisively take profits once a gain of 2%-5% is achieved. If signs such as 'massive volume without price increase' or 'volume-price divergence' appear during the upward trend, it indicates upward resistance; risks should be immediately avoided, and drawdowns should be controlled.
