Newbies just entering the cryptocurrency market should pause!
Don't rush to place orders as soon as you open the market software,
this bad habit will only lead to deeper losses.
I also fell into this trap in my early days,
watching the fluctuations on the K-line and fearing to miss out,
chasing orders only to get stuck deeper,
not understanding the meaning of 'waiting',
and not knowing what signals to wait for.
Today, I will use short-term trading as an example,
teach you how to find the right entry points and avoid detours.
The core of short-term trading focuses on three points:
First, align with market volatility,
keep a close eye on 1M, 5M, 15M period K-line charts,
and capture immediate long and short battle signals;
Second, don't be greedy with tools,
focus on 1-3 core indicators only,
for example, K-line patterns (hammer line, shooting star) combined with moving averages (EMA) and trading volume,
simplifying the analysis dimensions;
Third, enter and exit quickly,
set profit targets at 3-8 dollars,
strictly limit losses to 1-3 dollars, and never procrastinate.
The pitfall guide must be remembered:
In the 5 minutes before the announcement of macro data like non-farm payrolls and CPI,
be sure to stay out of the market,
during this time, spreads widen sharply and slippage risks increase;
Refuse to stubbornly hold,
if a single loss exceeds 2 dollars, immediately stop loss,
don't let short-term trades turn into deep positions;
Don't go against the trend,
even when doing short-term trades, refer to the 1H trend,
if EMA shows a bullish arrangement, only go long;
Control trading frequency,
don't exceed 5 trades per day,
maintain a position of 80% or more of the time.
Finally, a reminder:
The win rate for short-term trading is usually between 55%-65%,
the key to profit is a win-loss ratio of ≥1.5:1.
It is recommended to first use a demo account to refine strategies,
and only switch to a real account once profits are stable.
Short-term trading in the cryptocurrency market is like licking blood on the tip of a knife,
discipline is the only protection.