Some people may say that short-term operation is speculation! First of all, Xiaofei wants to say that short-term operation is not speculation. The real short-term operation is an investment behavior that has mastered certain market operation rules and requires strong skills. Short-term operation actually tests a person's skills and patience. People who are proficient in short-term operation must have seen a lot of K-line charts, studied their trends, and summarized the general rules.

In addition to reflecting short-, medium- and long-term fluctuations, the most macro point of the candlestick chart is that it can tell you which projects have done a good job in market value management, and which projects have been unable to recover after being smashed and are purely for profiteering. For example, we have mentioned many times before that there are many forked coins of BTC. In fact, except for BCH, the candlestick charts of other forked coins are not worth reading.

These forked coins' candlestick charts have been declining since the beginning, with basically no fluctuations, sliding down like a slide, giving no opportunity for retail investors to escape. From their candlestick charts, it can be seen that the operators no longer hold a large amount of coins; these coins are concentrated in the hands of retail investors, so no one is lifting the price, and they have basically become legacies. Many retail investors have gone from short-term trading to medium-term, from medium-term to long-term, and from long-term to legacy with these coins.

In addition to being able to read candlestick charts, we also need to adhere to several major principles of short-term trading, the first being the profit withdrawal principle: when buying a coin, if it earns more than 10%, we must start to implement the capital protection principle (if it later drops to the purchase price, sell unconditionally). If it earns about 20%, then it is stipulated that this trade must earn at least 10% before selling. To maximize profits, when earning 20%, stipulate that if this profit drops to only 10%, do not sell unless you are very sure of the technical stage high point; otherwise, do not sell.

Next is the capital protection principle: when buying a specific coin, after buying, if you see it gradually losing 15% (this number varies by individual, but 15% is generally recommended), then cut your losses and exit. This is about stopping losses in a timely manner. If it rises later, that’s fine; after all, that time was an incorrect entry point, a wrong trade. Mistakes come with a price, and that price is loss; losses will help you remember, so you won’t think about chasing after it.

In short, short-term trading must follow some basic principles, especially paying attention to: quick exit and quick entry does not equal frequent trading, chasing hotspots does not equal blind choice, taking profits does not equal being timid, and staying in cash does not equal staying away from the crypto circle; do not insist on buying at the lowest price or selling at the highest price.

Some strategies or points to note for short-term investment:

1. Position: Short-term positions do not need to be too large, at most accounting for 10% of the total position, with the rest in long positions or used for averaging down. After all, long positions are the foundation of our profitability.

2. Coin types: Although it is short-term trading, try not to touch coins you are not familiar with. Prioritize those you know and can understand. If it is a bear market, it is advisable to only touch mainstream coins or even Bitcoin, because even if you do not cut losses in time, being stuck or losing is only temporary, while altcoins may not be the case; being stuck could mean forever.

3. Time: Personally, I define short-term as within half a month or even a month; unless you can monitor the market constantly or have related automated software, otherwise I do not recommend doing a few hours of such trading. The specific short-term time should be determined based on market trends, varying from a few days to ten days.

4. Take profits and cut losses: I have found that major losses in short-term trading often occur due to failure to take profits or cut losses in a timely manner, so everyone participating in short-term trading must make a rough profit and loss plan. This plan does not need to be very detailed; a general direction is sufficient, and then adjust according to market changes.

In addition to sharing some techniques for short-term trading, I have also summarized some tips for trading cryptocurrencies, hoping to be of help to all investors.

1. Familiarize yourself with various technical analyses of candlestick charts.

2. Do not go fully invested or fully shorted in a short time.

3. Set a military order for yourself to take profits and cut losses promptly.

4. During rapid price fluctuations, try not to trade.

5. Don’t put too much pressure on yourself; maintain a balanced mindset.

6. Do not look at too many other people's analyses; everyone says different things. The price trend is inherently affected by many factors, and all predictions about the future are fifty-fifty, half right and half wrong; just believe in yourself.

7. Excessive speculation in cryptocurrencies can affect your health, but when a significant upward or downward trend comes, you must use your wisdom to go long or short, thereby making money or earning coins.