Essential Trading Strategies
1. Trend Following
“Trend is your friend.” Identify upward or downward trends using:
Moving averages (50/200 MA)
RSI (Relative Strength Index)
MACD indicator
Trade in the direction of the broader trend to reduce risk.
2. Breakout Trading
Breakouts occur when price moves beyond key support or resistance levels. Binance’s real-time order book and volume indicators help confirm breakout strength.
3. Scalping
Scalping involves making multiple small trades to capture minor price movements. Binance’s low fees and fast execution make it ideal for this high-frequency approach.
4. Risk-Reward Planning
Always define:
Entry price
Stop-loss
Take-profit
A common rule is maintaining at least a 1:2 risk-to-reward ratio.
Risk Management: The Key to Survival
Even the best strategy fails without proper risk control.
Golden rules:
Never risk more than 1–2% of your portfolio on a single trade
Use stop-loss orders
Avoid emotional trading
Don’t over-leverage
Crypto markets are highly volatile. Protecting capital ensures longevity.$ETH
