Any transaction is just trial and error, which determines that putting all your eggs in one basket may suffer significant blows.
Therefore, attacking in batches is the best strategy. According to the established position funds, a 1:2:1 strategy can be adopted. From experience, intraday contract trading is suitable for several time frames of candlesticks: 1 minute, 3 minutes, and 5 minutes.
1 Minute: Commonly known as "snatching hats." This trading method obtains profits from extremely short trading opportunities, requiring traders to have no patience. Quick in and out. Generally, each profit is not too much, and the stop-loss points set during trading are also few.
In addition, in this trading method, the transaction fees account for a large proportion of profits, and it is generally suitable for low-fee or intraday closing trades. Another point to note is that some varieties of 1-minute candlesticks are not very active, so traders should try to avoid these varieties.
3 Minutes: The 3-minute candlestick is used by many intraday traders during this time period, and there are many trading opportunities every day. The price of the currency is set within a fluctuation range, and the fluctuation range also has a certain trend, avoiding the situation where some indicators become ineffective due to excessive fluctuations in the 1-minute candlestick.
This trading operation method allows for setting larger profit targets for each trade, and the stop-loss range can also be widened appropriately.
5 Minutes: On the basis of the 3-minute candlestick, operations can be further stabilized, although daily trading opportunities are fewer than those of the 3-minute candlestick. However, once a trading pattern appears, it is relatively stable, and monitoring is not as exhausting as with the 3-minute candlestick.
One-third method, which is a capital management operation, divides the available funds into three parts, aiming to prevent you from operating with full positions.
Funds are our lifeline, and we must ensure the safety of our lives.
The application of the one-third method is to build positions with one-third of the funds. If the direction is correct after building the position, we maintain one-third and do not chase the order midway. Chasing orders often increases the risk.
The one-third method can be broken down into one-sixth and one-ninth methods, making operations more flexible.
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