The Most Effective Strategies for Crypto Day Trading
Surfing coin trading brings quick results, profits in a short time, so it avoids many big risks for traders. However, many people today still do not understand well about surfing, how to trade surfing coins most effectively, and how to use this strategy correctly. Right below, let’s take a look at the experiences by our team for day trading cryptocurrency strategy in the short term.
When is The Best Time to Trade Coins?
What is Trade Coin Surfing?
Trade coin surfing or to be precise is a form of coin trading in a short time, based on each wave of the price of the crypto money market for trading. Surfing here is a transaction that takes place in a short time, maybe 5mins, 15 mins or it can be daily surfing.
Surfing is a trading method that most traders now prefer to use because it brings profits quickly, without waiting for life, in line with the impatient psychology of many people today. However, as we have learned, there are many mistakes that make scalping losers, so to surf the market, it is necessary to choose the right time.
When to Trade Surf Coins (Scalping)?
The best time to trade surfing is when the market price of that coin is the most volatile, because based on the rise and fall of the coin price, you can trade surfing and make a profit. For a sideways market, without a breakout or any change in a short period of time, it is best not to choose a scalping trade.
So when you do technical analysis or predict a short time to the market for a certain coin that will have strong price fluctuations, you should choose that coin to surf. The time to surf must ensure that the coin price has not reached the top, because swinging the top is a huge risk for traders.
Should I trade Coins Surfing?
Advantages of Trading Coin Surfing
Most of today’s traders in the coin market choose to trade coins with a surfing strategy, few choose long-term investment. So surely surfing has many advantages of it:
- Earn profits quickly: with surfing trade, you can make a profit after only 5 minutes, 1 hour or 1 day depending on the trading efficiency.
- Surfing trade avoids long-term risks: for the cryptomarket, nothing is certain, because of the nature of any altcoin, it can disappear at any time, so shortening the trading time can prevent these risks.
- Saving trading time: you don’t need to spend a whole day or a few days to track market information and news. And do not have to sit for hours to see how the market is doing.
- Simple trading with only technical analysis without holding too much information.
Risks When Trading Coins Surfing
For surfing, besides many benefits, it is impossible to ignore the risks that come to you. Investors themselves must know the risks to be able to anticipate and calculate the problems they will encounter in the future during the trading process.
- With a volatile market that is both an opportunity and a risk, the trader himself choosing the wrong time to enter an order will lead to a loss.
- The requirement to trade surfing is to be good at technical analysis and sensitive to information.
- Losing a lot of transaction costs: each time you enter and exit an order on the exchange, you have to pay a fee, so trading too many times will cost you a lot of fees.
How to Trade Coins Surfing
Below we will guide everyone on some of the easiest ways to trade surfing coins, quite effective with today’s market, anyone can learn on their own and trade profitably.
Trade Coin surfing Method or Called Scalping
Scalping, also known as Scalp, is a trading strategy that takes advantage of daily market price fluctuations to trade. That means you will take advantage of the price movements of a certain coin during the day to place orders accordingly.
Essentials for scalping strategy:
- Speed trading
- Chart reading skills
The most important point of scalping is that everyone must firmly grasp technical analysis, and need to grasp the signs on the price chart of that coin provided in the past, thereby making accurate predictions of price trend in 5 minutes, 10 minutes, 15 minutes or 1 hour … will increase or decrease, thereby making a decision to place appropriate buy and sell orders.
Scalping method requires you to analyse and monitor the price chart in that trade time frame continuously, the speed of making judgments and the speed of placing orders must also be fast. For scalping, you must first determine what time frame you will trade, and be assertive with your choice.
You can execute multiple trade orders in one day, executing whenever you see a strong price movement during the day. That means you will capture the time of the strongest price fluctuations in any time of the day, then proceed to place orders accordingly, most profitable.
Trade Coin based on Multi-Timeframe Analysing Method
For trading surfing, the most important point is that the trader himself must grasp the trend, judge how the price will trend in the next short time. Each analysis time frame requires investors to do technical analysis, to surf, you must use a multi-timeframe analysis strategy.
For technical analysis of multi-timeframes, then you choose to analyse in 2-3 timeframes to get the best results. The way to analyse the trading time frame of surfing is as follows:
- Time frame determines the trend
- Time frame to determine entry point
Principle: The frame for trend analysis must be done on a larger time frame than the order frame.
For example: You determine to surf Bitcoin in the 5-minute time frame, which means you will place a buy and sell order in this time frame. Then you must determine the price trend of Bitcoin in the near future up or down. Then you have to analyse the larger time frame, that is the 15p and 1h frame analysis.
Trade Coin Surfing According to The News
If you are not good at technical analysis, new to the market and do not understand the analysis of surfing trading problems then you can choose to trade coins based on news. Usually this method is quite effective for this market today, because there is a lot of data to analyse. Take a good example of Bitcoin, Dogecoin is a currency you can trade according to the news. As soon as Mr. Elon Musk’s online status mentioned the price of these two coins, they immediately increased sharply, setting great prices in investment.
So if you follow the news, evaluate that news positively or negatively for the coin you are trading, you will have a plan to place an appropriate trade order, earning huge profits. To be able to surf based on news, you have to spend a lot of time there to be able to stay up to date with all the news of the full market.
Experience trading coins surfing
Prioritising Technical Analysis
Prioritising technical analysis is the first principle, correct surfing is to use technical analysis knowledge and skills as a foundation. If you do not know technical analysis, and want to surf according to emotions, it is best not to do it.
To be able to do technical analysis, you can flexibly use technical indicators, can use news, and can rely on Japanese candlestick patterns to analyse price trends, price reversal signs of coin price.
Often many people will choose to invest with only one currency, but according to many professional traders, they recommend us to allocate a portfolio. That means you make investments in many different coins, but not too much, about 2-3 coins to avoid confusion.
The list here should ensure:
- Includes 2-4 different coins
- In those coins, it is necessary to allocate according to levels: from high risk – low risk, high volatility – low volatility .
Efficient Capital Management
After allocating the portfolio, it is important for the trader himself to grasp the price trends, to know his capital, and then manage it later for the best.
To be able to manage capital effectively you need:
Step 1: Set a trade goal, you must know how much capital you spend on surfing, choose how to surf, and how much to use for each trade.
Step 2: Set profit and stop loss targets: People calculate how much profit to take and how much loss to cut. Principle of compliance with that stated goal.
Step 3: Follow the target when the coin price matches the target.
To manage capital to trade coins effectively, traders must be disciplined and have trading principles.
Step 4: Calculate profit and loss, review your daily trading capital. It is best to make statistics on an Excel table so that it can be easily seen and calculated.
Don’t Let Emotions Control
Do not let your emotions affect the results of the trading process, make sure when you conduct technical analysis, when placing orders, you are in a state of alertness, not being worried, afraid or trying to hold orders or able to salvage losses or simply expect a higher price to gain more profit.
So when you are angry and upset, it is best not to trade surfing, because it greatly affects the decisions of traders.
Discipline here is assertiveness, principles, goals, plans and the need to perform in accordance with the goals set out initially. Disciplined trading creates a professional in investing, it makes trading habits as well as helps you avoid overthinking.
Above is a guide for day trading cryptocurrency strategy effectively that everyone can refer to. Surfing trading has too much risk, it is really not suitable for new traders who do not understand the market as well as technical analysis. Take care and good luck when trading!
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