In cryptocurrency trading, there is no such thing as the wrong direction, wrong market or wrong currency. The market itself is not wrong, it is usually our decisions and operations that are wrong. Whether it is long or short, as long as you choose the right entry point, the possibility of loss will be greatly reduced. The problem often lies in lack of patience and not setting a stop loss.
Trading straregy
Long Strategy: Patiently wait for a pullback: If you want to go long on a certain coin, wait patiently until the price falls back on the 4-hour chart and enter the market, and set the stop loss at 0.5% below. If the stop loss is triggered, observe whether it is a short-term decline or an effective break below the support level.
Find a new support level: If the support level is effectively broken, wait for the next 4-hour retracement to enter the market, and set a 0.5% stop loss. Keep the profit and loss ratio at 1:1.5, so that even if the market fluctuates greatly, it is not easy to be locked in or lose money.
Short selling strategy: Use Keltner Channel or Bollinger Band: Wait for the price to touch the upper track. If the price continues to move upward, continue to wait until a negative line appears and breaks through the upper track. Set the stop loss at the upper track price or 0.5%.
Patiently wait for new highs: If the stop loss is triggered, wait for a new high and then repeat the above steps. Be patient and wait for the right entry opportunity so that you will not be easily trapped or lose money.
Avoid guessing tops and bottoms:
Avoid limit orders: Do not try to guess the top and bottom and then place a limit order. The market often exceeds expectations, and the limit order cannot set a stop loss before it is executed, which may lead to a liquidation or deep lock-up.
Monitor the market in real time: trade according to actual market trends and do not rely on limit orders to reduce the risk of missing out or making wrong judgments.
Emotional management and learning: Avoid information that stimulates emotions: Pay less attention to exaggerated market news, which will only increase anxiety and have no practical help for trading.
Use waiting time to learn: 99% of the time in trading is waiting, and 1% of the time is trading. While waiting, you can study technical analysis books, such as Wyckoff theory, Japanese candlestick charts, etc., to improve your trading ability and technical level.
Trading is not just about strategy, it’s also about mindset and discipline. Here are some additional tips:
Establish a trading plan: Have a clear plan before each trade, including entry, exit and stop loss settings. Stick to the plan and don't change it at will.
Keep a trading log: Record the reasons, execution and results of each trade. Review the trading log regularly to find out the reasons for success and failure and keep improving.
Diversify your investments: Don’t concentrate all your funds on one currency or one trading strategy. Diversifying your investments can reduce risk and increase the stability of your returns.
Set reasonable expectations: Don’t expect to make a profit on every trade, the market is unpredictable. Keeping reasonable expectations will help stabilize your emotions and avoid making wrong decisions due to short-term fluctuations.
Continuous education: The crypto market is changing rapidly, so it is very important to continue to learn new knowledge and technologies. Pay attention to industry trends, attend seminars, read professional books, and stay sensitive to the market.
In general, successful trading requires a comprehensive consideration of market analysis, strategy execution, and emotion management. Only by continuous learning and practice, and cultivating good trading habits, can we move forward steadily in a volatile market.
Novice traders should never buy on their own. They cannot control their positions, stop loss, or add positions. They close their positions as soon as they lose, and cannot hold on to their wins. They cannot make any money at all.
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