The core of short-term cryptocurrency trading lies in replacing vague judgments with clear rules. Remember these three strict rules to help newcomers significantly reduce trial and error costs and focus on certain profits:
One, tiered profit-taking: Protecting profits is more important than predicting tops.
• If it rises more than 10%: Use the purchase price as the baseline, if it falls back to the cost price, immediately take profit and exit (to avoid 'paper profits turning into losses');
• If it rises more than 20%: Lock in the baseline of 'at least retaining 10% profit', never sell early at unconfirmed local highs (maximize the trend segment, don't be greedy for extremes);
• If it rises more than 30%: Force keeping 15% profit as a safety cushion, the remaining position can bet on extended trends (using profits to gain space, zero risk on principal).
Core logic: Not pursuing selling at the highest point, but ensuring that every transaction must be profitable through 'tiered locking', accumulating small wins for compound growth.
Two, rigid stop-loss: Use a small cost to exchange for survival rights.
• If a single stock loses 15% (can be adjusted according to risk tolerance, but not recommended to exceed 20%), immediately close the position to stop loss, eliminating the lucky mindset of 'waiting for a rebound';
• If the market rebounds after a stop-loss, treat it as 'entry timing error', do not regret or look back, accept the inevitability of 'paying for mistakes';
• Every trade must have a preset stop-loss level (such as key support levels, fixed ratios), execute immediately when triggered; this is the 'lifeline' of short-term trading.
Core logic: A stop-loss is not a loss, but rather a way to avoid 'one mistake leading to a total collapse', preserving principal is key for a comeback.
Three, reverse replenishment: Use volatility to reduce holding costs
• After taking profit and selling, if the target pulls back and you still believe in its logic, buy back according to the original holding quantity (same amount of coins, extra funds can be reinvested);
• If it rises back to the selling price after selling without a pullback, immediately chase the order and buy back (incurring transaction fees to avoid 'missing out', especially suitable for strong trends);
• Combine stop-loss strategies for cyclical operations: After buying back, if it falls again and triggers a stop-loss, it indicates that the target's volatility logic has changed, decisively switch positions (do not stubbornly fight with 'inappropriate targets').
Core logic: Not fixated on 'buying at the lowest price and selling at the highest price', but rather using price fluctuations to 'sell high and buy low', averaging down costs through the number of transactions.
The underlying principles of short-term trading
• Quick in and out ≠ Frequent trading: Only act when the signals that meet the above strict rules appear; if there are no opportunities, stay in cash;
• Chasing hot spots ≠ Blindly following trends: Use profit-taking and stop-loss rules to filter emotional trading, only trade targets with 'clear entry and exit points';
• Precise points ≠ Absolute highs and lows: Accept 'fuzzy correctness', seizing the key moments of trend initiation/termination is more important than getting hung up on 'a few cents difference'.
The certainty in trading always comes from 'consistent execution of rules'. When you are entangled in 'buying at the lowest, selling at the highest', it is better to first learn to lock in 'understandable profits' with strict rules— the premise for stable profits is to ensure that every operation has a guideline to follow.
