Short-term profit techniques‼️ Seeing many friends lose money in short-term trading, I really feel a bit sorry for them～ Making money is not something we can guarantee, but there are indeed practical techniques to control losses and reduce tuition fees. Recently, I've organized a few valuable tips for everyone to refer to:
1. Absolutely do not chase highs!
Market trends are fluctuating; once you chase high, it’s easy to get trapped:
• If the price exceeds half of the range of the previous high and low from 1 hour ago, don’t touch it; the probability of rising or falling is fifty-fifty, and entering means you’re passive;
• If a certain coin has a daily fluctuation of 100 points, never chase after it has risen more than 50 points; the risk of a pullback doubles directly;
• Even if you anticipate a rise, don’t rush to the upper Bollinger band; wait for a pullback to hit the lower band, middle band, or the 10-day moving average before considering.
2. Don't randomly catch falling knives!
You must wait for the market to stabilize (for example, rounding tops/bottoms, two bottom tests); there are very few situations that can V-reverse quickly～
Important reminder: If the consolidation pattern appears in the middle of the previous high and low range from 1 hour ago, it’s highly likely a continuation, not a reversal; don't misjudge!
3. Avoid trading during quiet periods!
Do not open new positions from 2:30 PM to market close, and after 10:30 PM～ The main market movements for the day have already occurred, trading volume shrinks, and direction becomes vague; entering means aimless floundering.
4. Always watch trading volume!
Before entering, pay attention to the 5-minute trading volume: without significant news, how can retail investors generate large volume bars? It’s highly likely the main force is moving!
The most reliable signal is "moving average convergence + increasing trading volume"; any price movements without trading volume are all illusions, don’t trust them!
5. Control single trade losses!
If you’re not confident in the market, don’t force your entry; don’t treat stop-loss as the confidence to buy recklessly～
You must have a clear entry logic, and place tight stop-loss orders upon entry; even if you incur a loss, as long as the logic remains, wait for the right opportunity to add positions again.
If you want to know more about short-term trading tips and pitfalls in the cryptocurrency market, feel free to chat with me anytime～
#Crypto Market Observations #ETH Trend Analysis
