"Short-term trading is the art of seizing fleeting opportunities in a turbulent sea of volatility" - this phrase summarizes the essence of short-term trading in the crypto market. Did you know that 95% of day traders lose their money? But the remaining elite achieve profits that exceed the dreams of the average investor.
Firas, a communications engineer, left his job after he started making a monthly income from trading that was three times his salary. "I started by losing 70% of my capital in the first six months. I almost gave up, but I decided to study my mistakes and develop a disciplined strategy." Today, Firas manages a successful trading portfolio and earns money by teaching others the secrets of persistence in this field.
Short-term trading is not for everyone - it requires time, focus, psychological discipline, and tolerance for pressure. But for those who possess these qualities, here are the most important short-term trading strategies.
- Breakout Trading: Relies on buying the currency when its price breaks through an important resistance level, or selling it when breaking through a support level. The idea is to ride the wave of momentum resulting from the breakout.
Samir, a professional trader, says: "I look for patterns like triangles and pennants that indicate energy accumulation before a breakout. When the breakout occurs with an increase in trading volume, I enter the market directly with a close stop loss."
- Bounce Trading: The opposite of the breakout strategy, here you buy when the price bounces from a strong support level, or sell when it bounces from a resistance level.
- Range Trading: In volatile markets that move within a specific range, buy at the bottom and sell at the top, over and over again.
Layla, a successful trader, shares her strategy: "I define the price range using the Bollinger Band indicator. I buy when the price touches the lower limit with a positive divergence in the RSI indicator, and sell at the upper limit."
- News Trading: Exploiting price volatility associated with important news such as listing on new platforms, major partnerships, or regulatory changes.
- Scalping: A strategy based on making small, frequent profits from slight price movements, often in minutes or even seconds.
Whatever the strategy, there are golden rules for short-term trading:
- Determine your risks in advance: Do not risk more than 1-2% of your capital in a single deal.
- Always use stop-loss orders: This is the safety net that protects you from sudden crashes.
- Determine the risk/reward ratio: Look for deals that offer a potential reward that is at least three times the risk.
- Avoid trading against the general trend: "The trend is your friend" - a golden rule in trading.
Nader, an experienced trader, shares a harsh lesson: "I was making good profits, but one deal in which I lost my discipline wiped out a whole month's profits. I learned that successful trading is 80% psychological management and only 20% strategy."
Remember that short-term trading is not a quick road to riches, but a profession that requires continuous learning and long patience. Start with small amounts, learn from your mistakes, and develop your own style over time.
In the next post, we will delve into the world of Japanese candlesticks - the visual language that reveals the struggle between buyers and sellers. Are you ready to decode this ancient language?
