Cryptocurrency Day Trading Maxims: Go with the Trend, Avoid Pitfalls to Preserve Life!

Having spent a long time in the crypto world, you will find that seasoned players have some day trading maxims that seem mystical but actually have logic behind them. Today, I will share a few commonly used short-term strategy maxims and explain the logic behind them to help you avoid blindly following others.

1️⃣ Reduce positions on rising days, increase positions on falling days

Logic: During the day, trading volume is active. If the price continues to rise, there will be many short-term profit-takers, which may lead to a pullback in the afternoon; conversely, when the price falls, the likelihood of bottom-fishing increases.

Note: This needs to be confirmed with trading volume; only consider reducing positions when there is a significant rise in volume. A rise with low volume may be a false breakout.

2️⃣ Sideways at night, big fluctuations the next day

Logic: Before the European and American markets open, major players often control the market during the Asian session, preserving energy to create momentum for the US session.

Note: The sideways range should be narrow, and the volatility should be below 2% for the next day's direction to be clearer.

3️⃣ A breakout with significant volume is a true breakout

Logic: When the price breaks through a previous high or support level, significant volume expansion indicates that major players are truly entering the market.

Note: A breakout with no volume is often a false breakout, with a high probability of getting trapped.

4️⃣ Don’t chase shorts during a sharp decline, and don’t chase longs during a sharp rise

Logic: After a sharp decline, a technical rebound is likely to occur, while after a sharp rise, profit-taking is common.

Note: In such cases, it is better to wait for a pullback or confirmation before entering.

💡 Friendly Reminder:

These maxims are not a “holy grail” but a summary of behavior patterns in day trading. It is best to use them in conjunction with candlestick patterns + trading volume + trading plans; blindly copying them will only lead to market education.

In the crypto market, rules are fixed, but the market is dynamic. Learning to understand the logic behind them is the key to turning maxims into weapons. $SOL