The simpler your short-term crypto trading strategy, the easier it is to get results.
I started with 50,000 in capital, and the most practical thing I’ve learned along the way is this: you don’t need to clutter your screen with indicators. Focus on a few tools you can actually use, and get really good at applying them consistently.
Today, I’m breaking down the short-term trading method I’ve used for years into four steps that anyone can follow.
1. Choose coins: Switch to the daily chart and look only for assets where the MACD has just formed a golden cross. Prioritize those where it forms above the zero line, as these coins tend to have a stronger overall trend.
2. Find an entry point: You only need one indicator on the chart: the 20-day moving average. Consider entering only after the price has firmly moved above it. If the price breaks below the moving average decisively, be alert to a weakening trend.
3. Manage your position: Ideally, a break above the moving average should come with a rise in trading volume. Start with a small position, then add to it once the uptrend is confirmed. At 40% profit, sell 1/3 of your position; at 80% profit, sell another 1/3. Let the rest ride and allow your profits to grow naturally.
4. Use strict stop-losses: If the price falls below a key moving average and fails to recover, exit according to plan. Never average down or stubbornly hold on. Don’t dwell on it even if the price rebounds after you sell; just wait for it to regain the moving average and look for a new opportunity.
After trading for a while, you’ll realize that methods that can make money over the long term are never complicated. Use MACD to identify the broader trend, moving averages to find entry and exit points, and trading volume to gauge strength. The rest comes down to sticking to your trading rules.
Of course, this method can still encounter false breakouts and consecutive stop-losses. Never treat any indicator as a guarantee of profit.
The biggest mistake in crypto trading is learning a ton of theory, then being unable to follow even a single rule when it’s time to trade.
I started with 50,000 in capital, and the most practical thing I’ve learned along the way is this: you don’t need to clutter your screen with indicators. Focus on a few tools you can actually use, and get really good at applying them consistently.
Today, I’m breaking down the short-term trading method I’ve used for years into four steps that anyone can follow.
1. Choose coins: Switch to the daily chart and look only for assets where the MACD has just formed a golden cross. Prioritize those where it forms above the zero line, as these coins tend to have a stronger overall trend.
2. Find an entry point: You only need one indicator on the chart: the 20-day moving average. Consider entering only after the price has firmly moved above it. If the price breaks below the moving average decisively, be alert to a weakening trend.
3. Manage your position: Ideally, a break above the moving average should come with a rise in trading volume. Start with a small position, then add to it once the uptrend is confirmed. At 40% profit, sell 1/3 of your position; at 80% profit, sell another 1/3. Let the rest ride and allow your profits to grow naturally.
4. Use strict stop-losses: If the price falls below a key moving average and fails to recover, exit according to plan. Never average down or stubbornly hold on. Don’t dwell on it even if the price rebounds after you sell; just wait for it to regain the moving average and look for a new opportunity.
After trading for a while, you’ll realize that methods that can make money over the long term are never complicated. Use MACD to identify the broader trend, moving averages to find entry and exit points, and trading volume to gauge strength. The rest comes down to sticking to your trading rules.
Of course, this method can still encounter false breakouts and consecutive stop-losses. Never treat any indicator as a guarantee of profit.
The biggest mistake in crypto trading is learning a ton of theory, then being unable to follow even a single rule when it’s time to trade.
