In the cryptocurrency world, there is an eternal truth that funds usually flow from frequent traders to patient traders.

The fundamental reason why most people cannot control their frequent trading is the lack of clear trading rules or strategies. The market fluctuates every moment, so it is very easy for people to feel that there are opportunities every second. Rising is an opportunity, falling is an opportunity, and seeing others making money on the square is also an opportunity. Anyway, as long as you think, the screen is full of opportunities, and you think about making money all the time, so you keep trading frequently and eventually leave the market with a margin call$BTC

  • I was also troubled by frequent trading. Although I cannot say that frequent trading will definitely lead to losses, I have rarely seen anyone who can achieve long-term profits through frequent trading.

Later, I reviewed my trading experience and came to the following understanding of frequent trading:

  1. It is very difficult to achieve profitability in frequent trading. High transaction fees and the cost of market fluctuations affect the stability of the strategy.

  2. To determine whether it is frequent trading, you need to review whether your trading logic is correct. Before starting each transaction, you must check whether it conforms to your trading system. This is the key.

  3. The fundamental reason for frequent trading is that novices lack clear trading rules. $BNB

So how should we do frequent short-term trading?

  1. You can do short-term trading, but you must follow the trend and control the number of times.

  2. Adjust your strategy flexibly. Short-term trading means getting in and out quickly. Don’t stick to one trading model.

  3. 3. The most important point is to always set a stop loss. In the cryptocurrency circle, short-term trading basically uses high leverage. Trading without a stop loss means that you only have this one trading opportunity!

    If you have any suggestions on short-term trading, you are also welcome to leave a message in the comment area.