The simpler your trading strategy, the easier it is to make money!
After starting with 50,000 and trading short-term over the past few years, my biggest takeaway is this: don’t pile on indicators. Just find the ones that really work and use them consistently.
Here’s a four-step short-term trading strategy I use myself.
Step 1: Pick coins.
Check the daily chart and only consider coins with a MACD golden cross—ideally one above the zero line, where the trend is relatively reliable.
Step 2: Find your entry point.
Keep just one line on the chart: the 20-day moving average.
Consider entering only after the price moves above the average. If it falls below, be cautious—the trend may be changing.
Step 3: Manage your position.
A breakout above the moving average is best accompanied by high volume. Start with a small position, then add to it once the uptrend is confirmed.
Take one-third off the table at a 40% gain, another third at 80%, and let the rest run.
Step 4: Stick to your rules.
If the price breaks below a key moving average and fails to recover, exit according to plan. Don’t average down or hold on stubbornly.
It’s okay if you sell too early. Wait for the price to stabilize above the level again before getting back in.
Honestly:
The longer you trade, the more you realize that profitable methods really aren’t complicated.
MACD sets the trend, moving averages identify price levels, volume shows strength or weakness, and the rest comes down to discipline.
This strategy can still run into false breakouts and consecutive stop-losses. Don’t expect any indicator to guarantee profits.
The biggest mistake in crypto trading is knowing a little about everything but sticking to none of the rules.
After starting with 50,000 and trading short-term over the past few years, my biggest takeaway is this: don’t pile on indicators. Just find the ones that really work and use them consistently.
Here’s a four-step short-term trading strategy I use myself.
Step 1: Pick coins.
Check the daily chart and only consider coins with a MACD golden cross—ideally one above the zero line, where the trend is relatively reliable.
Step 2: Find your entry point.
Keep just one line on the chart: the 20-day moving average.
Consider entering only after the price moves above the average. If it falls below, be cautious—the trend may be changing.
Step 3: Manage your position.
A breakout above the moving average is best accompanied by high volume. Start with a small position, then add to it once the uptrend is confirmed.
Take one-third off the table at a 40% gain, another third at 80%, and let the rest run.
Step 4: Stick to your rules.
If the price breaks below a key moving average and fails to recover, exit according to plan. Don’t average down or hold on stubbornly.
It’s okay if you sell too early. Wait for the price to stabilize above the level again before getting back in.
Honestly:
The longer you trade, the more you realize that profitable methods really aren’t complicated.
MACD sets the trend, moving averages identify price levels, volume shows strength or weakness, and the rest comes down to discipline.
This strategy can still run into false breakouts and consecutive stop-losses. Don’t expect any indicator to guarantee profits.
The biggest mistake in crypto trading is knowing a little about everything but sticking to none of the rules.
