Cryptocurrency trading on short-term operations, you must remember the four major iron rules:
【Profit Management】
Dynamic profit-taking strategy
When the holding profit reaches 10%, you need to be alert: if the coin price falls back to the cost line, immediately liquidate. When the profit expands to the 20% range, set a floating profit-taking line of no less than 10%. Unless it is clearly judged to be in a stage top area, avoid exiting too early. If the profit breaks through the 30% mark, the safety cushion should be raised to 15% as a mandatory profit-taking standard. This strategy locks in profits in a tiered manner, forming a virtuous cycle of "the thicker the profit, the higher the safety margin."
【Risk Control】
2. Ironclad stop-loss discipline
Establish a 15% loss red line (which can be adjusted according to personal risk preference), and liquidate unconditionally upon reaching it. One must recognize that the essence of stop-loss is a clear signal that the market denies the current trading logic; subsequent rebounds should not be regretted, as this is the "tuition" that must be paid for wrong judgments. A stop-loss price must be preset before each position is opened, treating it as a core component of the trading system.
【Position Management】
3. Grid replenishment rule
When the selling target experiences a pullback and the fundamentals have not worsened, you can buy back an equal amount at the original price. If there is no deep pullback after selling, when the coin price rises back to near the selling price, a repurchase operation must be executed. Although this strategy increases friction costs, it can avoid the risk of missing out, forming a virtuous cycle of "selling high and buying low." It is recommended to use it in conjunction with stop-loss rules: replenish upon rebound, and stop-loss on secondary declines; if the target oscillates repeatedly, re-evaluate the timing for re-entry.
【Trading Philosophy】
Short-term trading needs to build systematic principles:
Quick in and out ≠ disorderly operation, must be paired with disciplined profit-taking and stop-loss; chasing hotspots ≠ blindly following the trend, should be based on rational judgment of market sentiment; taking profits when it's good ≠ being timid and cowardly, is a precise weighing of risk-reward ratio; staying out of the market ≠ exiting the market, is actually a strategic adjustment to accumulate energy.
The essence of trading is a probability game; there is no need to be harsh on buying at the lowest and selling at the highest. Establishing a sustainable and replicable profit model is the true path.
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