Trading Methods to Increase Your Coin (Token) Holdings
Hello, fellow traders!
Follow us to get the latest information quickly.
Have a great day!
-------------------------------------
Increasing your coin (token) holdings by retaining coins (tokens) that represent profits is a useful method in investment markets where decimals are traded.
To use this method, familiarity with day trading is advantageous.
Familiarity with futures trading will also make it easier to understand the principles.
-
The trading principle is simple.
1. If a profit is generated based on the purchase price, sell the original purchase amount to retain the coin (token) corresponding to the profit.
2. If a profit is generated based on the purchase price, sell the existing coin (token) before the price begins to decline, and then sell the amount at the appropriate price to increase the number of coins (tokens) you currently hold.
-
(ETHUSDT 1D chart)
The basic trading method is to buy in the DOM(-60) ~ HA-Low range and sell in the HA-High ~ DOM(60) range.
Using this basic trading method, you can increase the number of coins (tokens) corresponding to the profit.
However, since trading based on 1D chart movements is difficult, it is recommended to trade on a lower timeframe chart (e.g., 15m, 30m).
-
(15m chart)
You can trade using the basic trading method on the 15m chart.
However, sell when the HA-High ~ DOM(60) range declines, and buy when the DOM(-60) and HA-Low indicators meet to increase your coin (token) holdings.
Therefore, understanding LONG and SHORT positions in futures trading is essential.
At first, it's best not to try to increase your coin (token) holdings drastically all at once.
This is because you may make unintended trades if you're not yet comfortable with trading.
-
When the price is rising, the StochRSI, TC, and OBV indicators will trend upward.
At this time, the StochRSI indicator should not enter the overbought zone.
The TC indicator should remain above 0.
The OBV indicator should remain above the High Line.
If this isn't the case, it's highly likely that the uptrend will be difficult to maintain, so caution is advised when trading.
-
Conversely, when the price is falling, the StochRSI, TC, and OBV indicators will show a downward trend.
In this case, the TC indicator should remain below 0.
The OBV indicator should remain below the Low Line.
The StochRSI indicator is only valid if the trend isn't upward.
-
When determining the timing of a trade, check the support levels of the indicators displayed in the price section, along with the movements of the auxiliary indicators during uptrends and downtrends.
In other words, the most important factor in trading is whether the indicators in the price section provide support near the horizontal line.
It's not a significant trading strategy if the profit increases by just 1 coin (token).
However, increasing the number of coins (tokens) representing profit through numerous transactions ultimately increases the number of coins (tokens) with a purchase principal of zero, reducing the burden of trading with existing investment funds.
Regardless of your investment amount, increasing the number of coins (tokens) representing profit is a method that can generate significant profits in the long term.
The basic trading method of buying and selling all of the profits to generate cash profits may be a better option.
However, since there's no guarantee of profit when starting a new transaction, the burden of new transactions is likely to increase.
However, increasing the number of coins (tokens) representing profit reduces this burden.
This is because trading is conducted through existing holdings (coins, tokens) rather than starting a new transaction.
-
There may be cases where you sell an existing coin (token) because you expect the price to fall, and then try to buy it back at a reasonable price, only to find that the price doesn't fall.
To reduce these risks, you should monitor the movements of auxiliary indicators on the 1D chart, such as StochRSI, TC, and OBV.
In other words, it's better to sell and then buy when the price is in a downward trend rather than when it's in an upward trend.
-
Thank you for reading.
I wish you successful trading.
--------------------------------------------------
