Short-term Trading Rules for Cryptocurrencies: Strictly Follow Discipline and Steadily Pursue Profits
In the short-term trading of cryptocurrencies, strictly adhering to operational discipline is the key to standing out in a rapidly changing market.
1. Dynamically Lock in Profits
After purchasing a certain cryptocurrency, you should flexibly adjust your trading strategy based on the price increase: 1. 10% Price Increase Alert: When the price of the cryptocurrency rises by 10%, you need to remain highly vigilant. Once the price falls back to the purchase price, decisively sell to secure profits.
2. 20% Price Increase Bottom Line Setting: If profits reach 20%, you can set a 10% profit bottom line. Unless you can accurately determine a temporary peak, do not easily sell to ensure continuous profit growth.
3. 30% Price Increase Risk Control: When profits reach 30%, at least maintain 15% of the profit before considering selling, which can secure earnings while not missing potential upward space.
2. Firmly Execute Stop Loss
Stop loss is an important means of controlling risk and must not be taken lightly. When the loss of the purchased cryptocurrency reaches 15% (this can be adjusted based on personal risk tolerance), you must decisively cut losses and exit to prevent further losses. Even if the price rebounds after selling, you should accept it calmly. Before each trade, be sure to set a stop loss point; this is an essential part of short-term trading.
3. Timely Buy Back at Original Price
If you sell a certain cryptocurrency and the price drops, and you still have confidence in its long-term prospects, you can buy the same amount of cryptocurrency again at the appropriate time to achieve capital appreciation. In addition, if the price drops slightly after selling, and you fail to buy back in time, but the subsequent price rises back to the selling price, you should unconditionally buy back again. Although there will be some transaction fees, it can effectively avoid the risk of missing out. This principle can be combined with the stop-loss strategy: buy back when the price rises back to the original price, and if it falls again, decisively stop loss. If a certain cryptocurrency's price fluctuates violently and remains unstable for a long time, it should be reassessed, and more suitable buying and selling points should be chosen.
Short-term trading in cryptocurrencies requires strict adherence to principles and rational investment. Quick entry and exit is not blind fidgeting; chasing hot trends is not following the crowd recklessly; taking profits is not being timid; remaining in cash is not a complete exit. During the trading process, there is no need to be obsessed with buying at the lowest price or selling at the highest price; reasonable price levels are sufficient. The most important thing is to strictly follow trading discipline to remain undefeated in the waves of the cryptocurrency market.