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Let me tell you about short-term trading—it's not as mysterious as you might think. Over the past few years of navigating the market, I've gained some insights, and today I want to share them openly.
Let's start with sideways consolidation. This is the easiest place to make mistakes. When the price is grinding at high levels, don't foolishly think it's a buy signal—major players are probably preparing for action. As long as the key support levels hold, there's reason to be hopeful later on. The trap of low-level consolidation is even deeper; new lows often wait just around the corner, so don't rush to buy the dip. The smartest way to handle sideways movement is to stay put and wait until the price clearly breaks above the upper boundary or drops below the lower boundary with a clear direction before jumping in. That way, your success rate increases.
Regarding position building, I always advocate for staggered entries. For example, if you plan to invest 1000 coins, you can start by buying 200 at a relatively high point to test the waters. If it drops 5%, add another 300. If it continues to fall, buy the remaining 500. Buying more as the price drops helps lower the average cost and prevents being caught off guard by a sudden pullback after a full commitment.
As for the rhythm of rises and falls, there are two key points to remember: First, sharp declines are often followed by quick rebounds, whereas slow, steady declines tend to lack strength in their rebounds. Understanding this temperament helps you know when to buy the dip and when to wait and watch. Second, after large, continuous rises or falls, the market will inevitably enter a consolidation phase. During this period, it's easy to get trapped; it's safer to wait until the sideways movement ends and clear signals emerge before taking action.
The most important thing is mindset. Panicking and selling when you see a red candle, or chasing after a green candle with greed—that's typical emotional trading. As long as the main trend hasn't broken support levels, a red candle can be a good opportunity to position yourself; when there's a green candle, think about when to exit. Always keep an eye on support and resistance levels, and use contrarian thinking to avoid many pitfalls.
How to allocate funds, choose the right timing, and control the rhythm—all these details require gradual experience, continuous adjustment, and optimization through real trading. Only then can you find the strategy that truly suits you.