Capture trends with patience, rather than exhausting energy by staring at the screen.
I have been involved in cryptocurrency for more than eight years, and I have seen too many people enter this market with dreams of getting rich overnight, only to leave in disappointment due to improper methods. I have also experienced painful losses, and ultimately, through continuous trial and error, I have developed a trading method suitable for ordinary people.
The daily swing trading strategy I am sharing today is not a 'secret' that will instantly make you financially free, but rather a way to achieve stable profits under the premise of controllable risk.
Swing trading: a choice suitable for ordinary people
Swing trading is essentially a medium-term strategy, with holding periods ranging from a few days to a few weeks, aiming to capture the major fluctuations in price trends.
Compared to day trading, which requires constant monitoring, swing trading is more suitable for investors with regular jobs. You don’t need to watch price fluctuations all the time, just spend a little time each day analyzing the daily chart and looking for qualifying opportunities.
Swing trading doesn't require enduring long market volatility like long-term holding. It's more like surfing, catching a wave of trend and exiting before the trend exhausts, then waiting for the next opportunity.
My core principles of swing trading.
Only trade mainstream spot coins, resolutely avoid contracts.
This is a lesson I learned with real money. Contract trading seems to lead to quick wealth but is actually high-risk gambling. A slight market fluctuation can lead to liquidation. I choose to focus on spot trading of mainstream coins like Bitcoin and Ethereum because these coins have good liquidity, relatively controllable volatility, and are not easily crashed by a single negative news.
Use a large position to lay out mainstream valuable coins as the base, and then flexibly adjust using the 'rolling warehouse strategy'.
I will allocate most of my funds to core assets like Bitcoin and Ethereum as the base for long-term holding. Then, I will use part of the funds for swing trading based on market fluctuations: reduce positions appropriately when the price rises to resistance and add positions in batches when the price retraces to support. This way, I won’t miss the long-term upward trend of mainstream coins while enhancing profits through swing trading.
Stick to using the daily chart as the primary analysis tool.
The daily chart can filter out short-term noise in the market, showing more stable trend signals. I check the daily chart every day but do not operate frequently. I only act when there are clear trading signals in the market.
The six steps of swing trading.
1. Identify key support and resistance levels.
Support levels are prices that have fallen multiple times without breaking, while resistance levels are prices that have risen multiple times without breaking through. Clearly marking these positions on the chart is the foundation of swing trading.
It is important to clarify that support and resistance are not precise points but a range area. For example, Bitcoin may repeatedly find support between $28,000 and $28,500; this range is the support zone.
2. Determine the main trend of the market.
There are three basic types of trends: upward trends (high points continuously rising, low points also continuously rising), downward trends (high points continuously lowering, low points also continuously lowering), and range oscillation (prices moving horizontally between support and resistance).
In an upward trend, I mainly look for buying opportunities; in a downward trend, I primarily observe or operate with light positions; and in a range oscillation market, I can buy near support and sell near resistance.
3. Look for price action confirmation signals.
Near key support or resistance levels, I look for clear price reversal signals. For example, a long lower shadow K-line (bullish pin bar) near the support may indicate that the price is about to rebound; while a long upper shadow K-line (bearish pin bar) near the resistance may indicate that the price will fall.
Do not rush to enter the market; wait patiently for signal confirmation before acting. The market never lacks opportunities; what it lacks is the discipline to wait patiently.
4. Set exit points in advance.
Before entering a trade, I have already planned my exit strategy. Whether it’s a profit point or a stop-loss point, I set them in advance. This helps avoid being swayed by emotions during the trading process.
Stop-loss is usually set below support or above resistance with a certain space, while take-profit looks to the next key resistance or support level. My personal risk-reward ratio is usually controlled at above 1:2, meaning the potential profit space is at least twice the risk space.
5. Strict execution to avoid emotional trading.
This is the most difficult yet crucial step. Once the plan is set, it must be strictly executed. If the price hits the stop-loss point, exit decisively; if the price reaches the target, take profits as planned.
Many people fail not because their strategy is bad, but because they cannot overcome greed and fear. They are not greedy enough to take profits when prices rise; they fantasize about breaking even and are unwilling to stop-loss and cut losses when prices fall.
6. Record and analyze each trade.
I will meticulously record the entry and exit positions, reasons, results, and insights of each trade. Regularly reviewing these records helps identify my shortcomings and areas for improvement.
Trading records are the best teachers. By analyzing successful and failed trades, you can continuously optimize your strategies and avoid making the same mistakes.
Capital management in swing trading.
Capital management is the lifeline of swing trading. I follow these principles:
The risk of a single trade should not exceed 2% of total capital, so even if there are consecutive losses, there is still room for maneuver.
In times of strong uncertainty, test with small positions; when the trend is clear, moderately increase the position.
Allocate funds to 3-5 mainstream coins to diversify risk.
As profits increase, gradually withdraw part of the profit to lock in gains.
Common swing trading strategies.
Based on different market conditions, I mainly apply the following swing trading strategies:
Breakout strategy: When the price breaks through important resistance or falls below key support, it often signifies the beginning of a new trend. I enter after confirming the breakout and operate according to the new trend.
Range trading: In a volatile market, prices fluctuate back and forth between support and resistance. I buy when the price approaches support and sell when it approaches resistance.
Retracement entry strategy: In an upward trend, buy when the price retraces to key support levels (such as moving averages or Fibonacci retracement levels); in a downward trend, sell when the price rebounds to resistance levels.
The psychological construction of swing trading.
Patience is the most important quality for swing traders. The market oscillates most of the time, and clear trend opportunities are not abundant. Excellent traders spend most of their time waiting, only acting when opportunities are clear.
Do not try to catch every fluctuation. The core of swing trading is 'catch the big, let go of the small', grasp the main segments in the trend, and give up those small fluctuations that are difficult to grasp.
Accepting losses is part of trading. No trading strategy can guarantee 100% success. The key is to let the profits from winning trades exceed the losses from losing trades.
Conclusion
Swing trading is a strategy that balances risk and return. It doesn’t require you to monitor the market all day, but it does require patience, discipline, and the ability to learn continuously.
I know a trader from Hangzhou who was initially obsessed with short-term operations and lost 150,000 in two years. Later, he turned to swing trading of mainstream coins, growing from 120,000 to 6,000,000 in three years. This wasn't because he suddenly became smart, but because he found a trading rhythm that suited him.
The crypto world has never lacked opportunities; what it lacks are investors who can survive until opportunities arise. Find a trading method that suits you and strictly execute risk control to survive in this market for the long term.
I hope my sharing can help you avoid detours. Remember, stable profits do not rely on one or two windfalls but on the continuous execution of an effective trading system.
The strength of a trading system lies not in the precision of predictions, but in the consistency of logic and action.
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