Stay Short or take over the Long pair?
#TipsTradingFutures Crypto market sentiment shows a bearish trend.
It is possible that the crypto market will become bullish again. What are the trader's preparations for taking this current stance?
In short-term futures trading, the decision between holding a short position or taking a long position really depends on your market analysis and trading strategy.
Here are some tips that can help you make a decision:
1. Market analysis: Perform technical and fundamental analysis to understand market trends and the factors that influence them. Pay attention to technical indicators such as moving averages, RSI, and MACD to identify momentum and potential trend reversals.
2. Plan a strategy: Determine a clear trading plan, including entry and exit levels, as well as stop-loss and take-profit levels. Stay disciplined in following your trading plan.
3. Pay attention to volatility: Short-term futures are often more volatile than long-term trading. Make sure you understand volatility risks and have good risk management.
4. Monitor the news: Economic news and market events can influence price movements. Stay up-to-date with the latest news and pay attention to important announcements that may affect the market.
5. Use stop-loss: Place a stop-loss to limit losses if the price moves against your position. This is an important step in risk management.
6. Use technical analysis: Use technical analysis tools such as support and resistance, chart patterns, and Fibonacci levels to identify potential trading opportunities.
7. Pay attention to liquidity: Make sure you pay attention to market liquidity when trading short-term futures. Avoid entering markets with low liquidity which can cause high spreads.(*)
