Today at the plaza, I saw many people complaining about frequent stop losses.
I’m not talented, but I'll share some experience, or how professionals handle it.
For example, my trading frequency for short positions is actually only 3-5 times a day.
If market sentiment is poor, I might stay in cash.
The chart below explains in ultra-short terms because there’s not much to say about swing trading. I usually buy spot trades with trend indicators. Daily, I mainly rely on intraday short trading for living expenses or my own set goals, like 1000 a day or whatever. Once I reach it, I turn off the computer.
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Here’s a definition: price demand confirmation! It’s not just a price, but a price range. Everyone must understand this. If your teacher tells you to trade for a specific price when playing ultra-short, I suggest you be cautious. I’ve never seen an ultra-short expert pursue standardized prices. When doing ultra-short, it’s not about a price, but a price range, which is the demand areas for buying and selling prices.
(This term seems to be discussed less in China and more among European and American traders. My English isn't great, so this is how I translated it, but everyone should understand.)
It can be divided into two levels: buyer demand confirmation and seller demand confirmation.
From December 31 to today.
Taking the PENGU 15-minute chart as an example, it’s very representative. Everyone encounters this kind of chart daily; classic bull traps and bear traps leading to double losses. It’s very challenging for short-term trading.
Above: Preventative points.
1. It’s obvious that buying is needed. Many novice friends tend to buy after a large bullish candle closes, or worse, they directly chase the high of the large bullish candle. This definitely requires a stop loss. Everyone must learn to wait to avoid such chasing. This kind of mistake happens every day.
2. When it reaches the retracement area, it’s time to buy. Use the opening price of a large bullish candle for stop loss. Continue looking for new highs.
This prevents chasing highs.
I can’t write this anymore. I spent two hours drawing a diagram. I hope to write less in the future. I hope everyone understands a bit.
Where to chase up, where to wait, what went wrong, where it went wrong, and how to handle mistakes, etc.
I hope this helps with the issue of frequent stop losses. Frequent stop losses are due to problems with your entry points.
This article purely aims to help many novice friends at the plaza find reasons and solutions for their frequent stop losses, without showing off skills. There’s no skill to show; I just post a time chart daily at the plaza. However, you don’t know how much logic is behind it. I have never shown it off, nor do I care to. I’m just making my own money.
Everyone can compare the charts of BTC, ETH, SOL, SUI, especially new coins with high volatility, like HIVE, GRIFFAIN, etc. You will encounter this frequently, daily. Make sure to compare and summarize. Thank you all for your likes; they are useful.