1. Essentials and techniques for trading in cryptocurrencies
It is recommended to choose the mainstream and do swing trading, because its fluctuation range is easy to control, and there will be no frequent thunderstorms like altcoins. It is important to protect the principal, and don't follow the trend of other altcoins because the altcoins are rising wildly, and the leeks are also ruthless.
The mainstream here recommends BTC, ETH, EOS, LINK, XMR, etc., which have the following characteristics:
1. They are all stable, have been listed for a long time, have a large market, high market value, low risk, and will not have the phenomenon of thunderstorms.
2. Swing trading between 5%-30% is easier to manage.
3. Good prospects, with good appreciation potential and high fault tolerance.
2. Under what market conditions is it suitable to do swing trading?
You can swing trade at any time, but to increase profits and reduce risks, it's most appropriate to engage in swing trading when the following conditions are met.
1. The coin price is in a long-term sideways trend and fluctuates significantly (between 5%-30%);
2. Looking at the long term, there is an upward trend.
3. Looking at the long term, although it is a downward trend, each decline has a good rebound.
It is suitable to do swing trading when these phenomena exist. Additionally, if you feel it's a bull market or the signs of a bull market are very obvious, do not engage in swing trading; just buy and hold for the long term. Once a bull market arrives, if you exit through swing trading, it will be hard to catch up again due to the rapid pace.
3. Swing trading methods
Swing trading can also be divided into long-term and short-term swings. Short-term swings require watching the market closely, observing the forces on both the long and short sides, and monitoring 1-minute, 3-minute, 5-minute, and 15-minute moving averages. However, this can be very exhausting. Today, I will teach you a Buddhist-style trading method.
The so-called Buddhist-style trading method means that you don't need to constantly watch the market; just find the upper and lower pressure points. In a long-term sideways market, the price will fluctuate within a range, and we only need to observe the highest and lowest points of this fluctuation.
Then price buy at 0.5% below the lowest price and sell at 0.5% above the highest price. This is a relatively conservative trading method that reduces some risk but increases the single transaction's return rate.
Those who are more aggressive can buy at 0.5% above the lowest price and sell at 0.5% below the highest price. This method will reduce the single transaction's return rate, but the number of transactions will increase. I suggest being more conservative and using the first method; the more you trade, the more fees you incur, which is unnecessary.
Note: This method should be used when there is enough fluctuation; at least 5%, otherwise half of the profits will go to transaction fees.
If the coin price trend is good and shows a stable upward trend in the long term, you can set the price for each buy at 3% above the lowest point of the previous swing and sell at 5% above the highest point of the previous swing to expand profits.
4. Risk avoidance
1. In a long-term downward trend, it is advised not to swing trade lightly; while there may be profit potential, the risks are relatively high.
2. If you sell at a high point and the price continues to rise, be careful not to chase the high. Chasing the high carries certain risks. Don't be afraid of missing out on profits; it's better to miss out than to incur losses.
3. Always choose mainstream and stable assets for swing trading; do not be greedy. Successfully executing small swings with mainstream coins is already sufficient. Holding a gambler's greedy mentality will definitely lead to losses, often losing everything.
4. In the beginning, do not operate frequently. I generally look at 1-hour and 4-hour charts for swings within two days, and daily charts for short-term swings, then choose a suitable price for buying and selling, typically operating once every 1 to 3 days. Don't try to swing trade every few hours; doing it several times a day is too exhausting and there are many unstable factors in the short term, making it difficult to trade too frequently.
In the past few days, I have been preparing for the insider news coin that is about to launch!!!
Comment 168 to get in!!!
Impermanence, impermanence, impermanence!!!
Important matters should be said three times!!!
