Three Major Principles for Short-term Cryptocurrency Trading in the Crypto World #ETH#

Profit drawdown principle: Buy a coin, and after buying, if it has increased by more than 10%, we must start to implement the capital protection principle (. If it later drops to the buying price, sell unconditionally ). If it earns around 20%, then it is stipulated that this trade must earn at least 10% before selling. To maximize profits, when earning 20%, it is stipulated that the profit should not drop to only 10% before selling, unless you are very sure of the technical stage high point; otherwise, do not sell. If it reaches a 30% profit, sell unconditionally if it drops to a 15% profit. This principle is to let profit drawdown help you roll over your profits without technical judgment of high points.
Principle of Capital Protection: When buying a certain coin, after purchasing, if it gradually loses 15% (the number ( is personal), then cut losses and exit. This is to stop the loss in time; if it goes up again later, it's okay, after all, that time was a wrong entry point, and it was a wrong trade. Mistakes must come with a price. We must ensure that we do not let mistakes evolve into pain. Therefore, setting a stop-loss when opening a position is a very necessary condition in futures.
Original price buyback principle: The principle of original price buyback works like this: If you sell and then it drops, and you are optimistic about it, you need to buy back the same amount of coins, remember, it's the same amount because you sold at a high price. In this case, the number of coins is the same, but you have some extra funds; then if you sold the coins, and after the drop you didn't buy them back, and later it rises back to your selling price, you must buy them back unconditionally. Doing this just wastes transaction fees and can avoid many missed opportunities. This principle can be repeated with the principal protection principle, meaning when it rises back, you buy back at the original price, and if it drops again, you protect the principal. If you continue to do this repeatedly, you won't need to focus on the current price point of this coin, proving that your chosen point is not support or resistance and is easily breakable. Choose another point.
In short, short-term trading should follow some basic principles, especially noting that: quick entry and exit does not equal frequent trading, chasing hotspots does not equal blindly choosing, taking profits does not equal being timid, staying on the sidelines does not equal staying away from the crypto world, and entry and exit points do not require insisting on the lowest or highest prices.