Bounce Trading: Unlike the breakout strategy, here you buy when the price bounces off a strong support level, or sell when it bounces off a resistance level.
- Range Trading: In volatile markets that move within a defined range, buy at the bottom and sell at the top, repeatedly.
Layla, a successful trader, shares her strategy: "I define the price range using the Bollinger Bands indicator. I buy when the price touches the lower bound with positive divergence in the RSI, and sell at the upper bound."
- News Trading: Exploiting price fluctuations associated with important news such as listings on new exchanges, major partnerships, or regulatory changes.
- Scalping: A strategy that relies on making small, repeated profits from slight price movements, often in minutes or even seconds.
SOLUSDT
Perpetual
150
+0.65%
Whatever the strategy, there are golden rules for short-term trading:
- Define your risks in advance: Do not risk more than 1-2% of your capital on a single trade.
- Always use stop-loss orders: These are the safety net that protects you from sudden crashes.
- Define the risk/reward ratio: Look for trades that offer a potential reward at least three times greater than the risk.
- Avoid trading against the overall trend: "The trend is your friend" - a golden rule in trading.
ADAUSDT
Perpetual
