Several Requirements for Making Money from Cryptocurrency Trading!

It has been discovered that many people say that short-term trading is speculation. First of all, I must say that short-term trading is not speculation; true short-term trading is an investment behavior that requires mastery of certain market operation rules and strong skills. Short-term trading actually tests a person's skills and patience.

1. Develop a clear investment plan. To engage in short-term investment in cryptocurrency trading, you must first create a clear investment plan for yourself. You need to determine how much capital to use and what monthly returns you can achieve, all of which must be planned according to your risk tolerance and set a goal accordingly.

2. Ensure you have enough time and energy. Day trading emphasizes making profits frequently rather than making large profits in a single transaction. Develop your own trading principles and habits; do not place orders just for the sake of ordering, and don’t feel anxious when you’re not ordering.

3. Since short-term investments generally involve frequent trading, it is very important to choose the right cryptocurrencies. Trading must be continuous.

4. When holding positions in profit, close them when you reach your psychological target; do not aim to capture every last bit of profit. Also, pay attention to position size and leverage control; learn to strictly control position sizes based on the leverage of the products you are trading combined with your own capital.

5. Use technical indicators: There are countless technical indicators in the market, at least over a thousand. Each has its focus, and investors cannot cover them all; just be familiar with a few. Commonly used technical indicators include KDJ, RSI, etc.

6. Use moving averages: Short-term trading generally refers to the five-day, ten-day, and twenty-day moving averages. When the five-day moving average crosses above the ten-day and twenty-day moving averages, and the ten-day moving average crosses above the twenty-day moving average, it is called a golden cross, indicating a buying opportunity; conversely, it is called a death cross, indicating a selling opportunity.

7. Try not to trade during rapid price fluctuations.

8. Do not read too many analyses from others; everyone has different opinions. Price trends are influenced by many factors, and all predictions about the future are fifty-fifty, half right and half wrong; just believe in yourself.