If you are looking to capitalize on short-term market movements and identify currencies that may appreciate in the next 15 minutes to 1 hour, this strategy is designed for spot trading and works best for scalping. To maximize your profits and minimize losses, follow the steps carefully without skipping any.
Step 1: Identifying the Right Currency
1. Open the Binance app and navigate to the Markets section.
2. Divide your total trading capital into three equal parts.
3. Set the market chart to a 1-hour timeframe and sort the coins by Top Gainers using the drop-down menu.
4. Analyze the coin that gained the most and switch to the 5-minute timeframe to assess its trend:
If the coin price is falling after reaching a recent high, ignore it.
If the price is rising consistently and has increased by 3-5% in the last hour, it may be a good candidate for investment.
5. If the first currency does not meet these criteria, repeat the process with the second highest appreciation.
Step 2: Investing Smartly
Once you have identified a promising coin:
Use the first part of your funds to buy at the current price.
If the price drops by 2%, invest the second part of your funds.
If the price drops another 2%, allocate a third of your funds.
In this scenario:
Exit the trade at your mid-entry price to avoid losses if the currency does not rise.
If the price rises as expected, set your Take Profit (T.P.) at 3-5% gains.
Professional Tips for Success
Stick to the rules: This strategy works best when executed with discipline.
Be prepared for variability: On average, you can expect 5-7 profitable trades out of 10, with the remaining trades breaking even or resulting in small losses.
Avoid emotional trading: Focus on analyzing market trends and data carefully.
By following this structured approach, you can make your trading more predictable and profitable over time.
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