Short-Term Trading Techniques: Strategies with a Success Rate of Over 90% and the Best Ways to Grow Small Capital
1. Coin Selection Principle: Look for opportunities among popular strong coins, follow the current hot concept sectors, choose coins with a rise of over 7%, follow hot capital, and prioritize trending sectors, discarding unpopular coins.
2. Trading Cycle: It is advisable to hold coins for a day, with a take profit of 4% to 6% and a stop loss of 2%. The key to short-term trading is its brevity; time is the greatest opportunity cost of capital, so be quick, precise, and decisive, without being overly attached to a trade.
3. Trend is King: Do not avoid buying just because the price is high, nor buy just because the price is low. Buy during upward trends and do not assume a bottom during downward trends; overcome the psychological barrier of letting price dictate trading direction, as those who fear high prices often suffer.
4. Position Management: Keep the base position at 20% to 30%. If the market direction is consistent, gradually increase your position with smaller increments, creating a pyramid shape to lower the average holding price below the market price; your mode determines your mindset.
5. Moving Average Indicator: The 10-day moving average is the main control line and cost line. The best time to enter is when the coin price retraces without falling below the 10-day moving average.
6. Persist in Reviewing: Keep detailed market records, maintain all transaction slips, and note the details of each losing trade, including trade date, code, opening and closing prices, reasons for the trade, and precautions, analyze failed decisions, and identify repeated mistakes such as entering too early, feeling nervous, holding for too long, or having too large a position, and summarize errors.