I have summarized a set of thoughts that I have used long-term and validated repeatedly into 'six hard rules for short-term trading'. It's not complex, but it really works.
One, there must be direction after consolidation.
In a high-level consolidation, don’t rush to chase.
In a low-level fluctuation, don't rush to cut losses.
Before the direction is clear, the best action is — not to act.
Two, sideways periods are the easiest to kill.
Liquidation often does not happen in trending markets, but rather in sideways fluctuations.
Frequent losses and repeated stop-losses can wear down your mindset.
What you should really do is wait for a breakout or wait for a pullback confirmation.
Three, enter on bearish candles, exit on bullish candles.
In short-term trading, chasing gains is the worst.
Only the space created by a decline has a safety margin.
When the market rises steadily, consider taking profits instead.
Four, only sharp declines present opportunities.
A slow decline is a gradual drop, and the rebound is weak.
A quick drop is an emotional release, and the rebound can be fierce.
When encountering a waterfall, do not panic at the first moment, but start looking for structure.
Five, use a pyramid method to build positions.
In the bottom area, it’s not just a gamble.
Add to your position every time the market drops.
Lowering costs allows you to be naturally more at ease when the market rebounds.
Six, after a trend change, first manage your positions.
After a sharp rise, first withdraw your principal and leave only the profits.
After a sharp decline, don't fantasize, admit your mistakes and leave.
The market gives you opportunities, not for you to hesitate.
The core message is one sentence:
Don't guess the direction, don't chase the hot spots, don't gamble on luck.
Only engage in trades that follow rules.
This method has no fancy tricks, but it requires very high discipline.
For small funds, follow this approach; as long as you don’t blow up or give back, over time, the account growth will be very solid.
In the cryptocurrency circle, it has never been about who is smarter.
It's only about who can stick to the rules, endure emotions, and execute until the end.
Stabilize your mindset and control your actions.
You have already outperformed most people.