Discussing Cryptocurrency Trading Strategies: Long-term, Short-term, or Day Trading?
When I first entered the cryptocurrency world, I found myself struggling in the quagmire of losses, with profits seeming like an elusive mirage. At that time, like most retail investors, I jumped headfirst into the wave of day trading. However, I quickly realized that this trading model resembled a capricious fog, with the dawn of profit hard to penetrate through the heavy gloom, and successful profit-makers were few and far between.
In contrast, medium-term or long-term trading is like a steady giant ship, demonstrating greater stability amidst the market's waves. However, the weakness of human nature—lack of patience—makes it difficult for most to steer this giant ship and persist through the long investment journey. In this unpredictable and challenging cryptocurrency market, if one wishes to stand firm and achieve stable profits, a meticulously crafted trading system is undoubtedly a powerful tool for investors; otherwise, they can only be eliminated by the merciless market waves.
A complete trading system can be distilled into core essence: decisive stop-loss actions without hesitation, maintaining composure while holding profitable positions, and skillfully using leverage to maximize profit and loss efficiency. It specifically covers the following six core points:
First, following the trend is the cornerstone. Utilizing the moving average as a simple yet effective tool, clearly delineate the bullish and bearish camps. When the price stands proudly above the moving average, decisively take long positions and never go against the trend; conversely, when the price sinks below the moving average, decisively take short positions, riding the market trend.
Second, skillfully grasping the timing of position building. Within the framework of following the major trend, dare to act against the minor trend. At the moment of entry, meticulously calculate the potential risk-reward ratio, striving for a small stop-loss and a wide profit margin. Such opportunities often hide in the budding bottom or early stages of a trend, requiring investors to capture them with keen market insight.
Third, strict execution of stop-loss controls. Once the price breaches a key point, one must decisively cut losses without hesitation, and never harbor any hopes. Even if the price rebounds afterward, do not linger; calmly seek new entry opportunities. It is essential to understand that resisting positions and averaging down losses is akin to blindly wandering in the market minefield, which carries significant risks.