Short-term Cryptocurrency Trading Strategy: Detailed Explanation of Rolling Positions

Short-term cryptocurrency trading is an investment approach that seeks quick profits, requiring investors to have sharp market perception and strict discipline. Below is a simple and easy-to-understand rolling positions strategy for short-term cryptocurrency trading:

1. Choose Strong Coins

Trend is King: First, select coins that are in a bullish trend, meaning the market trend is upward. Observe whether their lifeline (usually the moving average) is turning upwards; the steeper the slope, the stronger the trend.

2. Establish a Base Position

Base Position Strategy: After confirming the trend, establish a base position of 30% to 40%. As long as the trend remains intact, this portion of the base position should not be easily sold to maintain ongoing market participation.

3. Swing Trading

Buy Low, Sell High: Ignore the absolute highs and lows of prices, focus on swing profits. Identify suitable buy and sell points based on the historical patterns of the coins to execute buy low, sell high operations.

4. Concentrated Investment

Selected Coins: Do not diversify investments; concentrate efforts on 1-2 well-performing coins. This allows for more focused tracking of market dynamics and improves operational efficiency.

5. Fund Management

Rolling Positions Strategy: Maintain a 30% base position and use 40% of funds for rolling operations, keeping the remaining 30% as reserve funds. This way, investors can hold coins while prices rise and have sufficient funds to add positions when prices drop.

6. Batch Trading

Pyramid Positioning: Use a batch buying and selling strategy, such as managing positions in a ratio of 2-3-3-2. This means gradually establishing positions at different price levels to reduce risk.

Summary

Unity of Knowledge and Action: Many investors encounter issues such as excessive diversification of coins, confusion between short and long-term operations, and improper position management. These issues often lead to insufficient funds to add positions during market corrections, affecting mindset.

Enhancing Capability: To improve these issues, investors need to achieve unity of knowledge and action, enhancing their market analysis ability and discipline, and strictly executing trading strategies.

Investors can pursue short-term profits while remaining sensitive to the market, through strict fund management and operational discipline. Remember, short-term trading requires quick reactions and calm judgment; always maintaining learning and adapting to market changes is key to success.

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