Six Tips for Short-term Stock Trading
The first is that after the price of a coin consolidates at a high level, there will usually be a new high. On the other hand, after a low-level consolidation, it will often create a new low. Therefore, we should wait until the direction of the market change is clear before we take action.
The second is to avoid trading during sideways movement. Most people lose money in trading because they cannot adhere to this simplest principle.
The third involves choosing candlestick patterns; when we see a bearish candlestick, we should buy on the daily line. When we see a bullish candlestick, we should sell.
Fourth, the decline slows down, and the rebound is also slow; a rapid decline leads to a rebound.
The fifth principle is to build a position using the pyramid buying method, which is the only unchanging principle of value investing.
The sixth point is that when a particular coin continues to rise or fall, it will inevitably enter a sideways state. At this time, we do not need to sell everything at a high point, nor do we need to buy in full at a low point. Because after consolidation, we will inevitably face a change in the market. If the market changes from high to low, we must clear our positions in a timely manner; in any case, we must push forward promptly.