If you want to trade cryptocurrency effectively in the short term, adhere to these basic principles. Ensure that you always control risk and maximize profits!
1. Protect Profits, Protect Capital
When your coin increases by 10% after purchase, keep a close watch. If the price starts to drop back to your purchase level, don't hesitate — sell immediately to protect capital. When profits reach 20%, be more patient but never let profits drop below 10%, unless you see signs of a reversal. If profits reach 30%, protect at least half (i.e., 15%) to minimize the risk of loss. Even if you miss the highest price, you can still preserve profits and create stable growth momentum for your asset.
2. Cut Losses in Time, Don't Hesitate
If your coin drops by 15% (depending on your risk tolerance), sell immediately to cut losses and protect your account. This helps stop further losses and keeps your capital safe. If the price recovers afterward, don't regret it — it's simply an incorrect entry timing. Always set a stop-loss order before trading to maintain discipline and protect yourself from unexpected market shocks.
3. Buy Back When Prices Drop to Optimize Costs
If after selling, the price of the coin drops but you still believe in its long-term development, don't hesitate to buy back. Maintain your assets and optimize capital efficiency. If the price doesn't drop too deeply and returns to the level you sold, buy back immediately — even if you have to pay transaction fees. This helps you not to miss the opportunity to profit. Combine this with stop-loss orders to manage risk more effectively.
CONCLUSION 👉👉
Short-term cryptocurrency trading is not a game of chance, but a disciplined strategy. Entering and exiting the market quickly is not a hasty action; taking profits is not cowardice; holding cash is not giving up. Focus on adhering to principles, timing, and strategy, rather than trying to seek perfection. Sometimes, 'good enough' is also a big win!
With these principles, I hope you will feel more confident when participating in the cryptocurrency market. Always remember that discipline and strategy will determine your long-term success! 💪💪💪💪
