11 very reliable rules for short-term trading

há 5 dias

1. Avoid revenge trading
When a trade is closed, whether it is a profit or a loss, you need to stick to the rules unswervingly. After executing a stop loss, try not to look at it again within 24 hours. This can effectively avoid revenge trading. Opening orders with revenge emotions is likely to increase losses. Some people believe that you should stand up from where you fell, but it is more important to wait and see calmly before triggering new entry conditions. Since traders have to look at charts for several hours a day, it is difficult to resist the temptation to open another order to save the situation after the stop loss. When using leverage to make swings, it is especially necessary to avoid a revenge mentality
2. Try not to participate in trading on weekends
Every weekend, the volatility of cryptocurrency prices will increase, and the trading volume will be small. This makes it difficult to predict short-term price trends. The reason is simple. Weekend buy and sell orders are usually smaller, market liquidity is lower, and whales are more likely to manipulate short-term prices, which makes the disadvantages of retail traders more obvious. In addition, since the cryptocurrency market is open 24/7, the trading intensity is much higher than that of the stock market, and weekends are a good time to decompress and rest, after all, life is more important than trading.
3. Keep trading at specific times
As mentioned earlier, the cryptocurrency market is open 24/7, and it never stops. Even full-time traders cannot keep an eye on the market. In order to keep a clear mind, you can set a fixed trading time for yourself. After opening an order during the trading hours, set the stop profit and stop loss, and then you can do other things. This eliminates the urge to constantly check your phone or study the K-line, and trading will not affect your normal life.
4. Don't have feelings for an asset
If you fall in love with the asset you are trading, it is easy to make mistakes in your decision. Excellent traders use efficiency and rules to make money and give themselves an advantage, because most people's trading behavior in the market is dominated by emotions. "Being an emotionless trading machine" can ensure decisiveness and principle in trading. One of the important reasons why many traders suffer heavy losses is that they are easily emotionally attached to certain specific altcoins, teams or projects. This is acceptable for medium and long-term investors, but it is a potential disaster for short-term traders.
5. Keep simple trading rules
Traders often combine multiple indicators, news and candlestick patterns to try to find a suitable confluence point for trading. This is not a problem in itself, but be careful to avoid over-analysis, which complicates the problem. In fact, when the candlestick pattern that suits your own system appears on the chart, you can start trading. At the same time, it is particularly important to pay attention to stop loss setting and position control.
6. Only trade in the right state of mind
When you are angry, tired or stressed about something, don't trade, and your state of mind will affect your judgment. The key to maintaining a good state of mind is to have other daily activities outside of trading. For example, fitness, reading, and spending time with family and friends can all help cultivate the right trading philosophy.
7. Record a trading diary
Trading diary review is boring, but it is actually meaningful because it can help you avoid making the same mistakes. There are specific reasons behind profitable and losing orders. Recording trading details is a way to learn and grow quickly.
8. Don't try to catch a falling knife with bare hands
"Catching a falling knife with bare hands" refers to traders trying to buy the bottom of an asset that is plummeting. The motivation for bottom fishing is usually to lower the cost price and make up for the losses caused by the sharp decline. The idea of ​​trying to accurately buy the bottom during the plunge is unwise. Waiting for a stabilization rebound and the resistance level to turn into a support level before entering the market is a more prudent approach.
9. Don't ignore extreme market conditions
While referring to technical analysis indicators, black swan events or other extreme market conditions cannot be ignored. Ultimately, the market is driven by supply and demand, and sometimes the market is extremely unbalanced.
Take the RSI relative strength index as an example. Generally, if this indicator is below 30, the asset can be considered oversold. Does this mean that it is safe to buy the bottom? Not really! It only shows that the market is under the control of sellers. Under special market conditions, the RSI may reach extreme values, and may even drop to single digits or close to zero. Even so, it does not necessarily mean that the price is about to reverse. Trading based entirely on technical indicators can lead to the loss of a lot of money. This is especially true in black swan events, because extreme price behavior can cause technical indicators to fail. The market can continue to move in one direction, and no analytical tool can stop this trend.
10. Don't forget that technical analysis is a game of probability
There is no absolute correctness in technical analysis, it is essentially just a game of probability. That is to say, no matter what technical method you use to formulate a strategy, there is no guarantee that the market will operate as expected. Technical analysis is just a prediction and cannot be operated as a deterministic event. No matter how rich your experience is and how dazzling your record is, you can't take it for granted that the market will follow your technical analysis. If you hold this kind of thinking, it is easy to over-bet on a certain preset, resulting in excessive risk exposure, and the market will teach you a lesson every minute.
11. Don't over-trade
The number of transactions is not positively correlated with profit. Even if the market provides multiple opportunities, try not to operate more than 3 transactions at the same time. The more types and numbers of positions, the more difficult it is to manage risks. If multiple transactions are stopped out, you may suffer significant losses. Jesse Livermore, the pioneer of day trading, said something very reasonable, "Money is earned by patient waiting, not by trading." We should try to avoid trading for trading. In fact, under certain market conditions, staying on the sidelines and waiting for opportunities to enter the market can help us avoid a lot of unnecessary risks.
What is least lacking in trading is opportunities, and the most precious thing is the principal. Every trader should formulate and improve a set of trading rules that suits him or her. After summarizing the lessons of failure and success, he or she can make more wise decisions and improve the winning rate of transactions.

Mr. Baker

há 4 dias

Nota

Very good, the expected target of 2686 support position rebounded smoothly, traders should pay attention to closing positions above

há 4 dias

Nota

Late yesterday, I analyzed the support level and profit-taking position trading plan on the Ethereum trend chart above. The expected support for Ethereum trading is 2686, and the profit-taking target is 2780. The traders who followed will directly make a profit of 80 points, which is great. I feel very happy at this moment.