Short-term Trading Strategies and Precautions
Although short-term trading can bring quick returns, it is also full of risks. Here are some simplified short-term strategies and key points to note:
1. Position Control
Short-term positions should not be too large, ideally no more than 10% of total assets. Remaining funds should be allocated to long-term investments or averaging down. Long-term positions are the main source of profit.
2. Currency Selection
When trading in the short term, choose currencies you are familiar with to avoid blindly investing in unknown currencies. In a bear market, try to choose mainstream currencies (such as Bitcoin), as even if stop-losses are not executed in time, losses are usually temporary, while altcoins carry higher risks.
3. Short-term Timing
The short-term time frame generally ranges from a few days to a month. If you cannot monitor the market in real time, avoid making trades that last a few hours. The specific timing for short-term trades should be adjusted based on market conditions.
4. Take Profit and Stop Loss
The most common reason for losses in short-term trading is the failure to take profits or stop losses in a timely manner. Set a rough plan for take profits and stop losses, and adjust flexibly according to market changes.
Through reasonable position control, currency selection, time management, and take profit and stop loss strategies, you can help reduce the risks of short-term trading and improve the success rate.
