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Frequent losses in disconnected operations, how to get out of the predicament?
Recently, many novice friends have asked me how to trade short-term in the crypto market. I share a set of practical techniques that have been tested by the market. Remember, in this 7×24 hour operating market, discipline is more important than technology.
One, Tiered Profit Taking Method (Fish Eating Theory)
10% Warning Line: When the coin price rises to 110% of the cost price, change your phone wallpaper to 'Take Profits'. If the price subsequently falls back and drops below the cost price, liquidate immediately.
20% Retained Margin: When it rises to 120%, first withdraw the principal, and set a dynamic stop loss of 10% on the profit portion (for example, if bought at 120U, must sell if it drops to 110U).
30% Minimum Guarantee: After rising to 130%, at least 15% of the profit must be retained before considering selling. Last year, I used this tactic to preserve most of my profits when Dogecoin rose to 0.8U.
Two, Mechanical Stop Loss Technique (Cut Loss Without Hesitation)
15% Hard Rule: Regardless of the cryptocurrency, you must cut losses when it drops to 85% of the cost price. Don’t believe in the nonsense of 'wait a little longer for a rebound'; last year when LUNA dropped to 85%, I didn’t run, and it ended up going to zero.
Set a physical alarm: Use your phone to remind you at scheduled times, for example, set an alarm for '15% Stop Loss', and operate regardless of whether it rises or falls when the time is up.
Backtesting Historical Data: Statistics show that over 80% of deep pullbacks will drop below 15%, timely stop-loss can avoid 70% of major losses.
Three, Price Difference Replenishment Method (T Trading Tips)
Declining Replenishment Method: If the coin price drops back by 10% after selling, use the previously earned money to buy back the same amount. For example, if bought at 100U and sold at 110U, buy back 1U when it drops to 99U.
Rising Purchase Method: If the coin price rises by 5% after selling, buy it back at the original price immediately. Don’t worry about transaction fees; last year I earned an additional 30% on BNB using this tactic.
Scope of Application: Only applicable to mainstream coins; altcoins are too volatile and can easily lead to losses.
Practical Tips
Position Control: Each trade should not exceed 10% of total funds to prevent being buried.
Trading Hours: Focus on the European and American trading sessions from 2-4 AM, as the volatility is the most intense.
Emotion Management: Limit trading to no more than 3 times a day; if you feel anxious, do push-ups.
Profit Withdrawal: Withdraw 5% for every 20% earned, and continue to let the rest snowball.
Remember, trading short-term in the crypto market is like guerrilla warfare: fight when you can win, and run when you can't. Most friends who used this method last year preserved their principal in the bear market. True experts are those who lock in risks with discipline and let profits run freely.