How to operate when just entering the cryptocurrency circle?
1. Position: For short-term positions, do not hold too large a portion, with a maximum of 10% of the total positions; the rest should be in long-term or used for averaging down. After all, long-term positions are the foundation of our profits.
2. Cryptocurrencies: Although engaging in short-term trading, try to avoid touching cryptocurrencies you do not understand. Prioritize those you are familiar with and can comprehend. If in a bear market, it is advisable to only touch mainstream coins or even Bitcoin, as even if you do not cut losses in time, being trapped or losing is only temporary. However, with altcoins, being trapped may be permanent.
3. Time: Personally, I define short-term trading as within half a month or even 1 month. Unless you can constantly monitor the market or have related automation software, I do not recommend engaging in trades that last only a few hours. The specific short-term timing should depend on market trends, typically ranging from a few days to about ten days.
4. Take profit and stop-loss: I have found that significant losses in short-term trading often occur due to delayed take profit or stop-loss actions. Therefore, when participating in short-term trading, everyone must have a rough take profit and stop-loss plan. This plan does not need to be overly detailed; a general direction is sufficient, and adjustments should be made based on market changes.
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