The focus of the News Trade is usually on short-term trading and front-running a one-time news event, rather than holding a position beyond it. Shorting opportunities on lower time frames may arise after the news is released. For instance, the announcement of a partnership by Avalanche led to a 4% movement.
[2] The Flavor of the Week Trade [Long-term]
The Flavor of the Week Trade typically involves a high time frame [HTF] and centers around a prominent coin that garners significant attention and consistently outperforms other assets. This strategy often involves buying the dip [BTD] depending on market conditions, and the most critical aspect is determining the ideal exit point. For instance, $APT$ serves as an illustration of this trading approach.
[3] The Correlation Trade [Short-term and Long-term]
The Correlation Trade can occur on either a lower time frame [LTF] or higher time frame [HTF]. Traders who use this strategy avoid longing coins that have recently experienced a pump and instead search for correlated assets that are likely to follow a similar trajectory. These coins are usually in the same "basket." The crucial factors for success in this approach are speed and selecting the appropriate assets. For example, $AXS$ into $GMT$ represented a typical instance of the Correlation Trade.
[4] The Catalyst Trade [Long-term]
The Catalyst Trade operates on a high time frame [HTF] and centers around news that can be front-run, such as catalysts or unlocks. Unlocks are not always bearish, and technical upgrades are not always bullish. The key factor in this strategy is to examine the market's risk appetite. For example, $dYdX$ v4 is a well-known instance that continues to rise significantly, while $MAGIC$ represents a bullish unlock.
[5] Additional Tip
Although there is more complexity to the process, categorizing each trade has substantially aided me in determining how to tackle them. It is essential to have a well-defined strategy and maintain discipline. Remember, it’s a marathon, not a race.
Nội dung chỉ mang tính chất tham khảo, không phải là lời chào mời hay đề nghị. Không cung cấp tư vấn về đầu tư, thuế hoặc pháp lý. Xem Tuyên bố miễn trừ trách nhiệm để biết thêm thông tin về rủi ro.
[2/2] Different Types of Narrative
[1] The News Trade [Short-term]
The focus of the News Trade is usually on short-term trading and front-running a one-time news event, rather than holding a position beyond it. Shorting opportunities on lower time frames may arise after the news is released. For instance, the announcement of a partnership by Avalanche led to a 4% movement.
[2] The Flavor of the Week Trade [Long-term]
The Flavor of the Week Trade typically involves a high time frame [HTF] and centers around a prominent coin that garners significant attention and consistently outperforms other assets. This strategy often involves buying the dip [BTD] depending on market conditions, and the most critical aspect is determining the ideal exit point. For instance, $APT$ serves as an illustration of this trading approach.
[3] The Correlation Trade [Short-term and Long-term]
The Correlation Trade can occur on either a lower time frame [LTF] or higher time frame [HTF]. Traders who use this strategy avoid longing coins that have recently experienced a pump and instead search for correlated assets that are likely to follow a similar trajectory. These coins are usually in the same "basket." The crucial factors for success in this approach are speed and selecting the appropriate assets. For example, $AXS$ into $GMT$ represented a typical instance of the Correlation Trade.
[4] The Catalyst Trade [Long-term]
The Catalyst Trade operates on a high time frame [HTF] and centers around news that can be front-run, such as catalysts or unlocks. Unlocks are not always bearish, and technical upgrades are not always bullish. The key factor in this strategy is to examine the market's risk appetite. For example, $dYdX$ v4 is a well-known instance that continues to rise significantly, while $MAGIC$ represents a bullish unlock.
[5] Additional Tip
Although there is more complexity to the process, categorizing each trade has substantially aided me in determining how to tackle them. It is essential to have a well-defined strategy and maintain discipline. Remember, it’s a marathon, not a race.