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The trading market is full of challenges. An investor started with a principal of 200,000 and experienced several years of ups and downs. Through continuous learning and practice, he gradually simplified his trading methods and ultimately earned 48 million from the Crypto Assets market within three years. This experience encompassed various trading strategies, including long term, short-term, ultra-short term, and swing trading.
Among various trading methods, 1-minute short-term trading attracts many retail investors due to its speed and excitement. This strategy requires traders to make quick decisions and fully exploit the smallest fluctuations in the market to profit. Successfully applying this strategy requires mastering several key technical indicators, such as the Exponential Moving Average (EMA) and the Relative Strength Index (RSI).
The core of the EMA and RSI dual indicator strategy lies in:
1. Use the crossover signals of EMA and RSI to identify precise entry and exit points. When the short-term EMA crosses above the long-term EMA, while the RSI rises from the oversold zone, it may indicate a buy signal; conversely, it may indicate a sell signal.
2. Strict risk management is crucial. Setting reasonable stop-loss and take-profit levels within such a short time frame can minimize potential losses and lock in profits.
3. The ability to make quick decisions is key to success. The fluctuations on a 1-minute chart are rapid, and traders need to be able to quickly analyze market conditions and respond.
4. Continuous learning and adjusting strategies are also very important. Market conditions are always changing, and successful traders need to constantly adapt to new market environments.
Although a 1-minute short-term trading strategy may seem attractive, it also comes with high risks. New traders should fully understand the risks involved before attempting this strategy and practice extensively on a demo account. Additionally, establishing a clear trading plan, including risk management strategies and exit plans, is crucial for long-term success.
Remember, there is no one-size-fits-all trading strategy. Every trader needs to find a method that suits them and continuously improve through practice. Regardless of the strategy chosen, maintaining a calm mindset and strictly adhering to trading discipline are the cornerstones of success.