1. Short-term thinking: hot spots, themes, and market sentiment
Interpretation: Short-term trading should seize the mainstream hot spots of the market and choose to operate on currencies with high themes and market sentiment, because this can obtain quick profits in a short period of time. Currencies with large price fluctuations and active hot spots often have better short-term opportunities. Give up the analysis of trends and directly enter the mainstream hot spots, which can save a lot of time and allow funds to quickly make profits following the main force.
2. Trend is king
Interpretation: In short-term trading, the direction of the trend is the key factor in deciding whether to buy or sell. Don't let the price affect your decision. A high price may continue to rise, and a low price may continue to fall. You must overcome your fear of high prices and avoid missing out on the real upward trend because you are afraid of buying at a high price.
3. Position management
Interpretation: Adopting a "pyramid-style" position-adding strategy, gradually adding positions from the bottom, and gradually reducing the proportion of each position-adding, can reduce the cost of holding positions and maintain the advantage of being lower than the market price. Reasonable management of positions can not only increase profit opportunities, but also effectively reduce risks and play a stabilizing role in market fluctuations.
4. Moving average indicator
Interpretation: The 4-hour moving average is the core indicator of short-term trading, known as the attack line or cost line. When the price is above this line, it means that the main force is pulling up; once the price falls below this line, it indicates that the divergence between long and short positions is increasing, which can be used as a stop loss basis for short-term trading. This line can help traders grasp the timing of short-term entry and exit and improve the accuracy of operations.
5. Unity of knowledge and action
Interpretation: Successful traders strictly follow the trading system and do not blindly innovate or seek exceptions. The core of trading lies in execution, not constantly adjusting the system or doubting the rules. Operating according to the established trading system can avoid emotional decision-making and improve trading stability.
6. Keep reviewing
Interpretation: Reviewing is an important means to improve trading ability. By recording each transaction and analyzing gains and losses, you can find repeated mistakes, learn lessons from them and improve. Reflecting on your own trading behavior and summarizing the rules can help you reduce mistakes in future transactions and form a more complete trading strategy.
Summarize
These six short-term tricks are not only applicable to the digital currency market, but also to other financial markets. The key lies in strictly implementing the trading system, following market hot spots, reasonably controlling positions, paying attention to trends and moving average indicators, and constantly improving your trading ability through review. Through these methods, you can seize profit opportunities in short-term fluctuations, while reducing risks and achieving more stable returns.