1. You can short altcoins by selecting the top 5-10 tokens from the gainers list, then observe the daily trend, historical highest price, and historical lowest price. Analyze the current price, then place your order. How do you determine if this token is suitable for shorting? Assume: Token A is currently first on the gainers list, having increased by about 50%. You can choose a suitable price based on the current 50% increase and add an additional 10-30% to it. Take a middle value of this price and place your short order.
2. Never believe that any token can continue to rise indefinitely; when a token reaches a certain gain, there will definitely be a pullback. After you place an order, you can hold it, but it should not exceed 3 days. Then choose a suitable price to sell, and remember not to be greedy.
3. Leverage and position size are linked; it's not that high leverage can't be used, nor is low leverage always safe. This is not absolute; what truly matters is position size. Position size is the most important factor. The calculation is as follows: Position size x Leverage = Your margin. If your position size is large and leverage is low, you can still get liquidated. What truly determines your profit and loss is your position size, so position management is very important.
4. Stop-loss is also a very critical factor; any position you hold must have a stop-loss, regardless of whether it's a large or small position. Not setting a stop-loss is a very foolish action, as it is crucial in both bull and bear markets. The market changes rapidly, and your position can be blown up in an instant. If you have enough margin, you might try to hold on, but that's not right. Don't expect anything to drop or rise again, because you may have to wait a long time. If you don't cut losses when you need to, you will end up holding on longer.
5. Set your stop-loss at the maximum or minimum loss you can bear, and then you won't need to stare at the screen.
6. Altcoins can also be longed. Currently, I have both short and long positions in altcoins. When I choose to long altcoins, I will look at the historical candlestick charts of altcoins just like I do when shorting. I analyze the 30m candlestick and the 1-hour chart, the historical highest price, and the historical lowest price as references. Based on the current price, I will determine if it will continue to fall today. If it continues to drop, I will place an order. When it falls to a certain position, it will trigger an automatic buy. The principle is the same as shorting, and the maximum holding period cannot exceed 3 days.
7. When trading, pay attention to domestic and international news and policies, as trading is influenced by many factors and is unpredictable. For example, recently, South Korea restricted capital outflow to save its stock market, which impacted the cryptocurrency market and caused a crash. Other influences include Nvidia facing fines from five countries due to antitrust notifications; this is related because Nvidia's graphics cards are linked to mining. The essence of any trading market is the same; it involves one group of people trying to reap without labor competing against another group of people doing the same.