General Recommendation
In a market with correction or uncertainty like the current one, the most important thing is to preserve capital and operate strategically. Here are some general recommendations to navigate this environment:
1. Technical Analysis and Supports
• Identify Key Levels: Analyze the supports and resistances of each cryptocurrency to determine areas of high probability for bounce or breakout.
• Avoid Buying in Downtrends: Look for clear confirmations of reversal before entering long positions (buying).
2. Trading Strategies
• Scalping or Day Trading:
• Operate in shorter time frames to take advantage of volatility.
• Use round psychological levels as entry and exit points.
• Swing Trading:
• Wait for a consolidation or pattern formation such as double bottom or triangles before entering.
• Short Selling:
• If a cryptocurrency breaks key supports with volume, consider opening a short position.
3. Risk Management
• Position Size: Never risk more than 1-2% of your total capital on a single trade.
• Stop Loss: Use tight stops to protect your capital in volatile markets.
• Take Profit: Set clear profit targets to avoid getting caught in pullbacks.
4. Monitor Market Sentiment
• Volume: Increases in volume can indicate turning points.
• News: Stay updated on news that may influence the market (regulations, hacks, etc.).
5. Maintain Patience
• Avoid Overtrading: Do not trade out of emotion or pressure; wait for the best setups.
• Liquidity: Ensure you trade in coins with sufficient volume to avoid slippage in price.