You say you are a novice; how can you earn that hundred thousand? No matter what you do, you should at least understand a little.
If you really want to turn a thousand into a hundred thousand in the crypto space, the first thing you need to do is learn.
Newcomers in the crypto space, if your capital is limited but you dream of turning over in the crypto world, then you must read this article carefully. Follow my advice, and in the upcoming bull market of 2024-2025, doubling your funds will no longer be a dream!
We all know that many newcomers to the crypto space may only have 1000 or 2000 dollars; most are working-class individuals like us who do not dare to risk too much money. Unfortunately, many have lost confidence in the crypto space after being 'cut down' during their explorations. The reason often lies in the lack of a clear learning plan and investment strategy.
So, how can you steadily make money in the crypto space with small funds? My advice is to avoid contract leverage and focus on ultra-short-term and short-term operations.
Intraday short-term trading! Trading secrets: entry and exit, stop loss... all explained!
Every novice must go through the phase of intraday short-term trading when entering the forex market. For general novices, only after repeatedly experiencing the 'baptism' of intraday short-term trading can they become stable profit-makers in the medium to long term.
After entering intraday short-term trading, if you cannot profit immediately, prepare to exit quickly; do not increase positions, do not average down, do not stubbornly hold against the trend, and do not hold positions overnight.
It is precisely because of the nature of intraday short-term trading, which has a short holding period, lower risk to market fluctuations, and rapid profits, that this trading style is favored by novices who have just entered the forex market.
Although the advantages of intraday short-term trading are obvious, many traders are unable to grasp the short-term trends accurately, and thus they cannot get started for a long time. Finding a way to open the door to intraday short-term trading is a dilemma that troubles many traders.
If you want to find methods, it won’t work to reinvent the wheel; why not seek insights from successful individuals? Today, I will take everyone to see how top traders carry out intraday short-term trading and how they profit.
01 - Determining trading assets and cycles
Not all assets are suitable for short-term trading.
To quickly profit from the market, you must first select good trading assets; only highly volatile and liquid currency pairs are suitable for intraday trading and can allow traders to profit quickly.
Therefore, it is better to give up those assets that are neither dead nor alive, neither hot nor cold, neither fast nor slow. Since you want to make quick money, you must choose active assets.
Determining the trading cycle:
1-minute trading cycle: small bets for big returns, quick entry and exit.
3-minute trading cycle: small wave trading.
15-minute trading cycle: intraday trend trading.
Supplement: Intraday short-term trading does not equal frequent trading.
02 - When to enter the market?
It’s a common question: What is a trading system?
The simplest understanding: the rules or regulations for entry, exit, stop loss, and position management constitute a trading system.
Specific understanding is as follows:
Under what circumstances to enter? In other words, what are your entry conditions?
My entry conditions are as follows:
If the opening price is higher than yesterday's closing price and does not break in 15 minutes, I will choose to go long; otherwise, I will go short.
The entry cycle is 1 minute, enter a long position when the price is above all moving averages, and enter a short position otherwise.
This is the simplest trading system regarding entry, just an example; for instance, this model:
A. Do not go long when the price gaps up; do not go short when the price gaps down. B. If the price gaps up and breaks below yesterday's highest price, short; if the price gaps down and breaks above yesterday's lowest price, go long.
In addition, each trader can add their own experience along with conditions C, D, E, F, G, etc. As long as the conditions are met, then enter; if not, do not trade.
These are the rules for entering the market; these rules are very important!!
03 - Under what circumstances to exit?
Important pressure or resistance levels, or when profit targets are achieved (with a profit-loss ratio of no less than 2:1). Of course, as trading experience accumulates, sometimes you will feel that the market is not flowing smoothly or there are potential risks, and you will also exit.
The profit model of intraday trading is to accumulate wealth through multiple small profits. Therefore, since you chose intraday trading, you must constantly remind yourself not to be greedy, and when you make money, you must know when to leave.
Profit must reach twice the stop loss; this is a principle for exiting. Additionally, if a trend shows signs of pausing, then close the position.
Many traders are burdened by greed; clearly, they made money after entering, but they always want to earn back their initial investment. For example:
When going long, the price may indeed rise continuously after entry, but it just won't sell, insisting on waiting until a bearish candle appears;
But when a bearish candle finally appears, it feels like the previous high price didn't sell, and maybe the next will be bullish, so let’s wait a bit more;
Waiting one time, two times and then ending up with a loss.
When trading intraday, remember one thing: if there is profit, exit!
04 - How to set stop losses?
Daily losses are not allowed to exceed 1.5% of total funds. If I trade 3 times in one day, then each loss must be 0.5%.
For intraday short-term traders, it is essential to develop the discipline: every order must immediately follow with a stop loss. If you haven't thought it through, don't trade.
Strict requirements for stop loss points are also excellent training for finding the best entry points. Over time, your market intuition will develop.
05 - How to manage positions?
Determine position size based on loss. The money allowed to lose divided by the points is the number of lots to open.
For example, this time I allow a loss of 500 yuan, with a loss of 20 points; each point is 10 yuan, so the number of lots opened = 500/200 = 2.5 lots.
Preparations for intraday trading
Assess whether today's market is unidirectional or range-bound, and based on that, formulate a trading plan;
My judgment:
Price fluctuating between the highest and lowest prices within 30 minutes is considered a range, and a breakout may indicate a trend.
Trading strategy:
Range market - short on highs, long on lows.
Trend market - follow the trend.
Trading plan:
That is, specific buying and selling points, stop loss points, position size, and profit-taking points.
06 - Intraday viewing skills and points to note
1. Market sentiment and mood
Changes in trading volume and open interest can reveal the strength of bullish and bearish sentiment.
If the price increases with high volume but does not fall, it may stop falling; if the price increases with high volume but cannot rise further, the short-term may be reaching its peak.
The requirements for volume during an uptrend and a downtrend are different:
Uptrend: Requires sustained and even volume increase; even volume on a 3-minute candlestick chart indicates that the upward trend will continue. If there is a significant decrease in volume or a very large volume appears, the uptrend may come to an end.
Downtrend: As long as there is an increase in volume when breaking through some key levels, the downtrend will continue. When the price no longer rises at a certain level, but positions keep increasing, and sell orders are placed at increasingly lower prices, it indicates that the price may fall.
Increasing positions with stagnation is an excellent opportunity to short, or increasing positions with a decline is likely to rebound.
2. Key points
Draw resistance, support, trend lines, etc. on the chart, and take action quickly when the price reaches or breaks through these key points. I personally use the Fibonacci retracement to predict resistance and support.
3. Trading rules
A. Only one type of asset can be traded within a phased time period.
B. Continuously track the assets being traded until they no longer have speculative value before giving up.
C. Observe the market window:
1-minute window - this is prepared for grasping the timing of entry and exit;
3-minute window - this is used to monitor the wave situation after entering;
30-minute or 60-minute window - used to monitor changes in the intraday trend at any time.
4. Trading evaluation
When traders ambush the target assets, they must quickly make comprehensive technical judgments and assessments on possible winning and losing scenarios before execution.
Only when the probability of attack exceeds 80% and the stop loss and profit target ratio reaches at least 1:2 should you allocate funds.
5. Things to pay attention to during trading
The operational status of support, resistance, and trend lines on various time frame charts;
Comprehensive assessment of position patterns on daily charts;
Judgment of the health and stability of waves on intraday charts;
The shape of candlestick bodies and changes in volume;
Disciplines to follow for trading
Leave the market decisively when hitting the stop loss;
Exit decisively when the profit target is reached, regardless of whether it goes up or down afterwards; the money earned comes first.
Opportunities will always arise, don't be greedy;
When the market is suspicious, exit decisively, even if it hasn't hit the stop loss yet, absolutely do not hesitate.
One tree cannot make a forest, a lonely sail cannot travel far! In the crypto space, if you don’t have a good circle and first-hand news from the crypto world, then I suggest you follow me, and I will bring you ashore; welcome to join the team!!!#币安广场社区小贴士