Profit withdrawal principle: When buying a coin, after you've made a profit of more than 10%, you should start to implement the capital protection principle (if it later drops to the purchase price, sell unconditionally). If you make around 20% profit, then you must ensure that this trade at least makes 10% profit before selling, in order to maximize profits. When you reach 20% profit, set the condition that if your profit drops to only 10%, you will not sell, unless you are technically sure of a temporary high point; otherwise, do not sell. Similarly, if you make a 30% profit, you must sell unconditionally if it drops to a 15% profit. This principle is for those who lack technical judgment on high points, allowing profit withdrawals to help your earnings grow.
Capital protection principle: When buying a specific coin, after purchase, if you see a gradual loss of 15% (this number varies by individual; 15% is generally recommended), you should cut losses and exit. This is to stop losses in time; if it rises again later, it doesn't matter, since the entry point was wrong, and that was a mistaken trade. Mistakes come with a cost, and that cost is the loss. Losses lead to remembering, and remembering prevents the desire to chase losses. We must ensure that errors do not turn into pain. Therefore, setting a stop-loss when placing an order is an essential condition in futures trading.
Principle of buying back at original price: The principle of buying back at the original price works as follows: If you sell and then the price drops, and you still have confidence in it, you should buy back the same amount of coins. Remember, it must be the same amount because you sold at a high price. In this case, the quantity of coins remains the same, but you now have some extra funds. If you sell the coins and they drop but you do not buy them back, and later they rise back to your selling price, you must buy them back unconditionally. Doing this only wastes transaction fees but can avoid missing out on opportunities. This principle can be repeated with the capital protection principle: buy back at the original price when it rises back, and protect the capital again when it drops. If you continue to operate like this multiple times, you don't need to focus on the current price of this coin, proving that your chosen price point is not a support or resistance level that can easily break. Choose another price point.
In short, short-term trading must follow some basic principles, particularly noting: fast entry and exit do not equal frequent trading, chasing hot spots does not equal blind selection, taking profits does not equal being timid, staying in cash does not equal avoiding the crypto space, and buying/selling points should not be fixated on the lowest or highest prices. If you still feel confused and don't know how to approach this market, comment 333 to get on board!
