"Successful trading is not just a technique; it's a game of patience with oneself." -- Soros
Short-term trading, as a method of quick profit in the market, attracts numerous investors. However, how can one maintain a high success rate amidst frequent entry and exit?
Especially for short-term traders, achieving stable profits requires not only technique but also patience and strategy. Today, we will discuss several key methods to enhance success rates in short-term trading, from signal filtering to adjusting profit-loss ratios and accumulating gains, hoping to provide you with effective references.
1. Signal filtering: Patiently waiting for the best opportunity
In short-term trading, capturing suitable buying and selling opportunities is crucial, as it helps us avoid false signals and effectively improve trading win rates. However, truly high-success-rate opportunities are rare, and to find such opportunities, we need to possess ample patience and strict signal filtering abilities.
a. Trading opportunities under multiple resonance conditions
The so-called "multiple resonance" refers to the simultaneous or short-term resonance of multiple technical indicators or signals. This resonance can be the synchronous resonance of price patterns, technical indicators, and market volume, or the consistency between short-term and long-term trends. Resonance signals not only represent a strengthening of market trends but also serve as relatively safe entry signals. For example, when the moving average system, RSI indicator, and candlestick patterns all point in one direction, this indicates a signal of multiple resonance. The advantage of such signals is that they not only increase the success rate but also significantly reduce interference from false signals. Multiple resonance means a clearer consensus in the market and higher reliability for entry.
b. Trading opportunities after false breakthroughs
In short-term trading, false breakthroughs often serve as a bait for bullish or bearish traps, and this phenomenon of false breakthroughs can help us capture reversal opportunities after market consolidation. Specifically, false breakthroughs usually occur near important support or resistance levels. When the market quickly retreats after breaking through a key position, it often indicates that the main force is clearing floating chips in the market.
Reverse opportunities after false breakthroughs often have a high win rate because market sentiment has undergone a clear reversal at this point. For example, if BTC breaks down and quickly pulls back above the support level, this is an opportunity we can consider for entry. By capturing opportunities after false breakthroughs and pullbacks, short-term traders can achieve high returns with low risk.
c. The importance of patience
Signal filtering and patient waiting are equally important. Many short-term traders are easily swayed by market fluctuations, leading to overtrading, which is often the main reason for lower success rates. In short-term trading, patience is the key to our success. Waiting for clear signals and patiently observing market trends is essential to find trading opportunities that truly meet the criteria.
If I had to choose a trading method, it would definitely be right-side trading.
If you feel confused in trading and do not know the direction to take, then firmly stick to right-side trading; it is the holy grail of trading. Although the cryptocurrency market is a news-driven market with lower technical operability, adhering to right-side trading will surely help you survive and familiarize yourself with the market. Perhaps you are a novice, just entering the cryptocurrency space, and are still unaware of what left-side and right-side trading are. Here’s a simple explanation: left-side trading refers to trading actions taken before the market trend is clear, while right-side trading occurs after the market trend is established.
Therefore, it can be seen that left-side trading is predictive trading, while right-side trading is deterministic trading. In the cryptocurrency market, if it is spot trading, then we can only trade one-sidedly, so only bottoms exist. However, if contract trading is conducted, it is a two-way market with both tops and bottoms. Here, we mainly take spot trading as an example. First, left-side trading poses certain risks for ordinary traders. Since ordinary investors often lack sufficient information channels and in-depth market analysis capabilities, buying in advance before the market bottom has formed may lead to funds being tied up for a long time. Additionally, predicting market bottoms carries significant uncertainty, and ordinary traders may face substantial loss risks when engaging in left-side trading without sufficient basis.
In contrast, right-side trading is more robust.
Right-side trading emphasizes taking action only after the market trend is clear, which helps traders avoid the uncertainty risk brought by market fluctuations. By observing the formation of market trends, traders can enter the market at relatively safe times, thereby increasing the success rate of investments. Moreover, ordinary traders can leverage their flexibility when engaging in right-side trading. Compared to institutional investors, ordinary investors may face disadvantages in terms of capital scale and information access, but their decision-making process is quicker, allowing them to respond more rapidly to market changes. Therefore, ordinary investors should fully utilize this advantage, patiently waiting for a clear market trend before making investment decisions. In practice, ordinary traders should adhere to the principle of rational investing, avoiding blind follow-the-crowd behavior and impulsive trading.
By deeply analyzing market data and combining it with news trends, traders can more accurately judge market bottoms, thus obtaining better investment returns in right-side trading.
In summary, ordinary traders should adhere to right-side trading strategies in their trading, treating market fluctuations with a robust and rational attitude, avoiding the potential risks brought by left-side trading. By patiently waiting and conducting detailed analysis, traders can make more informed investment decisions after market trends are clear, thus achieving long-term stable investment returns.
