What Method Can You Use To Success In Short Term Trading ?
Today I suddenly summarize the trade that I won and I see some mutuals so I’m writing this article for you guys to refer .
1.Short term trading methods that you should know :
1.1 Some basic points about trend
1.2 Trends that need your interest
1.3 Conclusion
Some basic points about trend :
The most important thing here is the view of the overall market. To be honest, the longer the trend ,the more possible. Long-term trends will give you an accurate view and at least limited to two things:
- Sell when the trend increases
- Hold and be bitter when the trend is down.
When deciding to hold for 5 years, of course you determine the trend of BTC increased to $ 20k for example. But when trading BTC for a month, you have to determine the trend of BTC next month or not to take profits or cut losses. This article is suitable for short, medium and long term trade.
The Importance of Trends:
Like a mob with tremendous power, led by big investors, headaches are in the way of driving the market. When the price is rising, you resist the excitement, they will quickly tear your body to the irony. When the price falls, you go back to the crowd panic, anxiety runs, you will trample die.
As a new trader, I am now acquiring the importance of two things that longtime investors still say: Up trend and down trend. Indeed, when entering the uptrend, despite a decent decline, after only a few days it increased again and gradually dropped far from the original landmark, every day a forward. Similarly you can see, when a coin has entered the downward trend, you have to determine that it is not up in a day or two days or even waited.
Trends that need your interest :
The upward and downward trend needs to be divided into three parts in order of importance:
1. The trend of the whole market
2. The trend of BTC
3. The trend of that coin
Why only trade LTC ( for example ), but need to pay attention to three trends? When the whole market is a color of blood, the green color will eventually turn red, sooner or later it will be slower. Here is the mass, bypass pump to “rubbish” with relatively small vol. In contrast, when the market is 80% green, the quickest will move, even if it is still top speed increase coin.
BTC trend: The trend of BTC is very important for two reasons: The strong fluctuation of BTC definitely affects Altcoin. For example, BTC has a shock from $ 4500 to $ 3000. Will ETH, LTC raise or keep prices? (According to USDT). People can clearly see the evidence when the BTC sudden increase / decrease rapidly, all Altcoin prices fluctuate strongly and then will stabilize (Although there are changes compared to before). Also brother trade coin / BTC pair should pay attention to this to avoid the case: Loss that is not likely to lose, or profit BTC that is actually negative.
Coin trend will be ranked last in importance after these two trends. Determining the trend of copper coin also from the two trends on the same itself. Assuming that the market is good, the buy signal with most of Altcoin is strongly increasing. (Trend of market), adding that the trend of stable BTC is now looking at the trend of coin: News, Current price compared with peaks and troughs, technical analysis of indicators.
So you have seen: If you determine all three trends as if the odds were too high already. The problem comes back, defining the trend of a hard one is 3. Do not determine the trend is clear, still in the trunk you are gambling offline. Here are some of my experiences :
The market trend is likely to last for a long time. Altcoin has been experiencing a series of months of continuous growth, from March to mid-June 2017, despite the cyclones, but not necessarily the uptrend. storm is higher than previous prices). Following the downward trend, if the majority of the Altcoin chart is checked, the downward trend starts from mid June and lasts until July 16, Last time, not even doing anything down. After this date, most of the coins have turned bullish, you can review by checking the dollar price on Coinmarketcap.com. Also on that website, when the coin has entered the trend, you will see a characteristic that the chart according to it is very similar. In addition, capitalization and trading volume is also important to determine the trend, I do not mention too carefully because this article has been very long.
BTC trend: BTC is also a coin, so it has the same characteristic with them, up and down. Coin has a large cap and most days it is copper with the largest trading volume (ETH or coin only occupy top few days), is the place where the investor confidence highest, the trend of BTC usually has some form: Sideways, medium and small, stable is the longest, the up trend is medium and the deepest is the shortest. . Watch the transition of the stages to make a decision on the BTC trend.
Lastly : The trend of coin is based on two main things: News and technical analysis. The market has increased, coin has good news, charts, technical indicators are not beautiful new increase is strange. That is when you see technical analysis with extremely high levels of accuracy in both support, buying, profit taking, etc. The longer the surf and the more times you need to observe the chart long, month and even year.
Conclusions :
As mentioned above, the trend is more important than all, the trend will become technical, do not forget the long-term strategy Buy and Hold always the highest profit. Surfing, trade short and medium term must learn to avoid risks .
Same as previous posts, this article only shows my personal views. I look forward to receiving contributions, positive feedback. I do not share the lease or anything related, just sharing experience.
