In order to trade, you must have a trading strategy that suits your investment style.
You must create this trading strategy yourself.
This is because, if you trade with someone else's trading strategy, there is a high possibility that you will close the trade without being able to endure psychological anxiety due to price volatility.
What is important when creating a trading strategy
1. You need to set the investment period.
The trading method differs depending on the investment period, so it is important to think about it before you start buying.
If you cannot set an investment period, you need to set a stop loss point that closes the trade when it falls below a certain point.
And, you must observe the stop loss point.
In this way, you need to prepare an alternative to the loss first and start trading in order to get a steady profit.
To set a stop loss point or a period according to the wave, you should at least be able to see the support and resistance lows on the chart.
There are various indicators necessary to confirm these support and resistance points, so if you find it difficult to set your own points, it is recommended to use the indicators.
(For reference, if you enable the non-use setting of the MRHAB-T indicator used in this chart, indicators that can confirm support and resistance points are displayed.)
2. You need to determine the size of the investment funds.
Once you have decided on the investment period, you need to determine the size of the investment funds.
Therefore, it is important to decide how much of your total investment funds will be invested.
Because it is not an investment in one coin (token), the operation of funds is important.
In addition, it is important to know how much cash you will have in addition to the funds to carry out the transaction.
If you start a trade and keep buying more if the price goes down, or if you use all your money to buy from the beginning, you can easily close the trade because the price fluctuations amplify your psychological anxiety.
Therefore, it is recommended that all trades proceed as split trades.
Therefore, if the price rises after buying, it is necessary to fix the profit by selling in installments at a suitable point.
In order to know where to sell, you can either find the support and resistance points mentioned above, or sell in installments based on the yield (10%, 20%, 30%, ...).
3. You need to decide how to trade.
Once the above-mentioned 1. investment period and 2. investment fund size have been determined, it is necessary to decide how to proceed with the transaction.
therefore, - How to make money; - You need to create a split transaction method, etc.
- How to make money This method has to decide whether to earn cash income or increase the number of holding coins (tokens).
It's usually good to get a cash return, but you need to think carefully when you're in the same price range you're in right now, i.e., the lows and the bottoms.
If you sell (100%) in order to unconditionally make a profit in cash, you are more likely to lose money because you will chase the price when it rises higher and buy it.
Therefore, 1. Depending on the investment period, I think it is good to increase the number of coins (tokens) held when it is not a short-term transaction.
If you can wait for the price to drop after selling 100%, it is good to make a profit in cash, but it is something to think about as most people will have a lot of trouble buying again.
Therefore, the recommended way to increase the number of coins (tokens) I have is to sell at the price including the purchase principal + transaction fee (x2 to x20) when the price rises for each unit price purchased in installments, resulting in a small amount of cash profit and coins (tokens) How to increase the number.
- Split trading method You need to decide at which point to buy in installments or sell in installments.
To do this, you need to know the points of support and resistance.
You should buy or sell in installments depending on whether you find support or resistance at the support and resistance points.
At this time, what is important is the number of split transactions.
You need to think about this part because you have to decide how many times you want to trade in installments.
This is because if you continue to buy more whenever the price goes down, you run out of cash, which can lead to huge losses.
To do this, it is recommended to purchase additional funds and sell the additionally purchased funds to secure cash when the price rises above the average purchase unit price.
Also, you can use the method of increasing the number of coins (tokens) you have, as mentioned in 3. How to generate revenue in the transaction method.
The reason you trade on the coin market is to make money.
However, the irony is that if you trade for a bigger profit, it is more likely to lead to a big loss.
If you want to make a big profit, you need to find a way to reduce your losses and then start trading.
Since individual investors have limited funds, they have to be very careful about managing their funds.
If your funds don't keep moving, you're losing money somewhere.
- Loss due to retention period; - Loss of missing new opportunities due to stagnant funds; - etc
** All descriptions are for reference only and do not guarantee a profit or loss in investment.
** The MRHAB-T indicator, which is inactive on the chart, contains indicators that indicate support and resistance points.
** Background color of Long/Short-S indicator: RSI oversold and overbought sections ** Background color of CCI-C indicator: When the short-term CCI line is below -100 and above +100, oversold and overbought sections are displayed.
** The OBV indicator was re-created by applying a formula to the DepthHouse Trading indicator, an indicator disclosed by oh92. (Thanks for this.)
(Short-term Stop Loss can be said to be a point where profit and loss can be preserved or additional entry through split trading. It is a short-term investment perspective.)
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(BTCUSDT 1D Chart) It is attempting a breakout for the first time since falling below 21475.02.
If you fail to break through, you should be careful as it may drop to around 20573.89.
A successful move above 21475.02 should see support above 21838.98.