Chainlink (LINK) surged more than 30% in September and is now looking to continue the momentum in October, making it an attractive option for day traders looking to capitalize on short-term price moves. According to crypto trading expert Kara Szabo, day trading LINK can be extremely profitable if done correctly.
In a recent Twitter thread, Szabo laid out her strategy for effectively day trading LINK while minimizing risk:
Szabo recommends buying LINK when the price dips below $7.50, which has proven to be a solid support level for the cryptocurrency. She advises traders to set a profit target, such as 5-10%, and sell when that target is hit. This allows traders to lock in quick gains as LINK’s price bounces back up.
The key is to take profits quickly, Szabo emphasizes, rather than holding out for larger gains that may not materialize. She notes that LINK tends to see upward momentum after dropping below $7.50, so traders can expect to see profits if they buy the dips.
Minimizing Risk is Key
Crucially, Szabo states that traders should never sell LINK for a loss. If the price drops after buying, traders should simply hold onto the position. Szabo points out that LINK has always eventually recovered to prices above key support levels. So while losing trades may require some patience, LINK will eventually rebound for a profit.
By following these guidelines, Szabo asserts that LINK offers a high probability of being a winning trade, making it attractive for short-term day trading. Of course, as with any trading strategy, risk management and setting stop losses are still important. But Szabo’s approach takes much of the guesswork out of effectively profiting from LINK’s volatility.
For active crypto traders interested in capitalizing on LINK’s price swings, Szabo’s strategy presents an insightful method. Buy on significant dips below $7.50, take quick profits when momentum shifts upward, and never sell for a loss. While not foolproof, traders who master this approach can consistently prosper from LINK’s short-term fluctuations.
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