If I had to keep only 6 key short-line trading core tips, I only recognize these 6:
1. In the range-bound period, don’t mess around. If the price is consolidating at the high level for 3 days, don’t enter. If it’s grinding at the low level for half a month, don’t panic. When direction is unclear, stay in cash.
2. Watch out for false breakouts. Wait for a pullback and confirmation before entering. It’s better to miss than to step into a trap.
3. Do the opposite: If a day drops more than 15% with no negative news, use 10% of your reserve cash to buy. If a day rises more than 20%, sell 30% of your position.
4. Only when the sell-off accelerates is it an opportunity. Avoid slow drifts lower. After a sharp drop confirms the fundamentals, use a small position to bet on a 5%-10% rebound.
5. Bottom “pyramid” adding: First buy 10% of your position. For every additional 10% drop, add only 5%. The more it drops, the less you add.
6. When a trend shift happens, withdraw: After a sudden surge, if it trades sideways for 2 days, take out your principal. After a sudden plunge, if it trades sideways for 3 days and breaks support, clear out immediately.
Keep these 6 rules, because preserving capital matters more than anything else.
1. In the range-bound period, don’t mess around. If the price is consolidating at the high level for 3 days, don’t enter. If it’s grinding at the low level for half a month, don’t panic. When direction is unclear, stay in cash.
2. Watch out for false breakouts. Wait for a pullback and confirmation before entering. It’s better to miss than to step into a trap.
3. Do the opposite: If a day drops more than 15% with no negative news, use 10% of your reserve cash to buy. If a day rises more than 20%, sell 30% of your position.
4. Only when the sell-off accelerates is it an opportunity. Avoid slow drifts lower. After a sharp drop confirms the fundamentals, use a small position to bet on a 5%-10% rebound.
5. Bottom “pyramid” adding: First buy 10% of your position. For every additional 10% drop, add only 5%. The more it drops, the less you add.
6. When a trend shift happens, withdraw: After a sudden surge, if it trades sideways for 2 days, take out your principal. After a sudden plunge, if it trades sideways for 3 days and breaks support, clear out immediately.
Keep these 6 rules, because preserving capital matters more than anything else.
