Three main principles of short-term cryptocurrency trading
The principle of returning profit:
When buying cryptocurrency, if you have made over 10%, then we should start adhering to the principle of capital protection (if the price falls to the purchase price, you should immediately sell without conditions). If you have made about 20%, then you need to establish that this trade should bring no less than 10% before selling to maximize profit. If you have made 20%, you need to establish that you will not sell until the profit falls to 10%, if you are not confident in technical analysis and do not know where the peak will be. Similarly, if you have made 30%, then when it falls to 15%, you should definitely sell. The principle is that without technical analysis, you will not be able to determine the peak, so let the return of profit help you in accumulating profit.
The principle of capital protection:
When buying a certain cryptocurrency, if you see that you are gradually losing 15% (this number depends on personal preferences, but 15% is recommended as optimal), you should exit the trade. This allows you to stop losses in time; if after that the price rises again, it is not scary, since you just entered the trade incorrectly. Mistakes must be paid for, and the cost of a mistake is the losses that leave a mark in memory, and if you remember this, you will not strive for repeat trades. We must ensure that our mistakes do not lead to serious losses. Therefore, setting a stop-loss from the moment of opening a trade is very important in futures.
The principle of returning at the original price:
The principle of returning at the original price is as follows: if you sold your cryptocurrency and then the price fell, and you believe it still has potential, you should buy the same amount of coins back. Remember that the quantity must be the same because you initially sold at a high level, so you will have the same amount of coins, but you received more money; if you sold a coin and then did not buy it back after the fall, and then the price rose again to your selling price, you should definitely buy it back. This is just a cost of commission, but it can prevent many potential losses. This principle can be reapplied along with the principle of capital protection: during a rise, return at the original price, and during a fall, apply capital protection. If you act this way many times.
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