In the volatile cryptocurrency market, treating trading as a professional job rather than an emotional game helps mitigate risks and maintain stable profits. Below are important experiences for effective operation:
1. Choose a reasonable trading time frame
The time after 9 PM (Vietnam time) usually brings clearer signals. During the day, the market is affected by a chaotic amount of information and erratic fluctuations. By evening, market sentiment has been absorbed, and the candlestick chart becomes clearer for making decisions.
2. Safe profit-taking principles.
Do not expect “x3, x5” in a single trade. When achieving profit, need to take some profits, for example: profit 1000 USDT, take immediately 300 USDT to secure the results. This is a way to minimize risk when the market unexpectedly reverses.
3. Based on technical indicators, not on emotions.
Use tools on TradingView such as:
MACD: monitor golden cross or death cross.
RSI: determine overbought/oversold conditions.
Bollinger Bands.: monitor the period of contraction or breakout.
Only enter trades when there are at least two consensus signals, avoid emotional actions.
4. Risk management with dynamic stop-loss.
When monitoring the market frequently: if the price rises, move the stop-loss in the upward direction (e.g., buy at 1000, price rises to 1100, set new stop-loss at 1050).
When unable to monitor: set a hard stop-loss at a maximum loss of 3% to avoid rapid collapse.
5. Schedule regular profit withdrawals.
Do not keep all profits on the exchange. It is advisable to withdraw 30% – 50% of profits to the bank account. The remaining balance on the exchange should not be considered real money until it is withdrawn.
6. Reasonable K-line chart analysis.
Short-term trading: focus on the 1-hour chart; observe 2 consecutive bullish candles to find buying opportunities.
Wave trading: use the 4-hour chart; prioritize orders near support zones.
Mistakes to avoid.
Do not use high leverage with all capital.
Stay away from lesser-known coins with poor liquidity.
Limit to a maximum of 3 trades per day to maintain discipline.
Absolutely do not borrow money to trade.
Conclusion.
Cryptocurrency trading should be conducted as a profession with principles, plans, and discipline. Follow the process correctly every day, then rest to avoid burnout. Persistently applying it long-term will yield more stable and sustainable results.