Short-term Trading Practical Skills in the Cryptocurrency Market: 5 Key Takeaways

Years of practical experience distilled into the following five short-term trading points for your reference:

1️⃣ Technical Analysis, Accurate Judgment of Buy and Sell Points

Golden Cross/Death Cross of Moving Averages: A short-term crossing above a long-term average is a buy signal; conversely, it is a sell signal.

RSI Indicator: Above 70 indicates overbought, below 30 indicates oversold, consider selling/buying respectively.

Bollinger Bands: Touching the upper band indicates strong pressure, sell; the lower band indicates strong support, buy.

2️⃣ Observe Trading Volume, Confirm Trend Strength

Price Up + Increasing Volume → Continue Holding; Price Up + Decreasing Volume → Beware of Pullback.

Price Down + Increasing Volume → Downward Continuation; Breakthrough at Key Levels + Increasing Volume → Trend Confirmation.

3️⃣ Risk Control, Always Prioritize

Diversify Investments, don’t put all your eggs in one basket;

Set Stop Losses, control losses to 5%-10%;

Control Position Size, each trade not exceeding 20% of total capital.

4️⃣ Stay Updated on Hot Topics, Trade with the Trend

Pay attention to new coin listings, positive news, and sector rotations to seize trading opportunities.

High Volatility Coins carry great risk, ensure to set up take profit and stop loss.

5️⃣ Arbitrage Trading, Steadily Earn Price Differences

Utilize price differences between exchanges for arbitrage by buying low and selling high.

Be mindful of fees, withdrawal times, and other costs; first understand the platform rules to avoid restrictions.

Summary:

Understand technology, observe volume, emphasize risk control, follow trends, and cleverly arbitrage, only then can short-term trading seek steady victories. Remember: Preserve your capital to survive until you profit!