$pippin Honestly, short-term trading in cryptocurrencies really doesn't need to be that complicated.
I have been in the market for a long time and have summarized some practical insights to share with everyone today.
1. Strategy during Sideways Period
The sideways state is the stage where mistakes are most easily made.
Many people see the price hovering at a high level and think it's a signal to get in, but in fact, the main force may be brewing the next move.
As long as the key support level remains, there will be opportunities in the subsequent market.
Conversely, during low-level sideways trading, don’t rush to bottom fish because there may often be new lows waiting for you.
The wisest approach is: do nothing, wait for the price to break through the upper line or fall below the lower line, and enter the market when the direction is clear, which increases your odds of success.
2. Gradual Position Building
When building positions, I strongly recommend buying in batches.
For example, if you plan to invest in 1000 coins, you can first buy 200 at a relatively high level to test the waters. If it drops by 5%, then add 300 more, and if it continues to drop, make up the remaining 500.
This method of buying more as the price drops can effectively reduce the holding cost and avoid being caught off guard by a correction after going all in at once.
3. Pay Attention to the Rhythm of Price Changes
There are two rules that every trader should remember:
After a sharp drop, there is usually a quick rebound, while the rebound after a slow decline tends to be weaker.
Mastering this rhythm will help you determine when to bottom fish and when to wait and see.
After consecutive large rises or drops, the market will inevitably enter a consolidation period, which is the stage where it is easiest to get trapped. It is wiser to wait for a clear directional signal after the sideways trading ends before entering the market.
4. Control Your Mindset
Don’t let the market's candlesticks sway your emotions.
Panic selling at the sight of a bearish candle and chasing a bullish candle will only lead to losses.
As long as the overall trend is not broken, bearish candles often present opportunities to buy at low prices, while a bullish candle should prompt you to consider taking profits.
Remember the support and resistance levels; thinking in reverse can often help you avoid big pitfalls.
Capital allocation, timing selection, and rhythm control are details that need to be continuously adjusted in practice, slowly refined.
You will find the trading method that suits you best.
Going solo will never compare to having a team guide you in the right direction. If you want to make it, I'm always here.
