My answer is yes, definitely yes!
Use cycles to trade contracts:
The larger the time frame you look at, the higher your chances of winning. Essentially, the cryptocurrency market is a global financial market, and you are playing a trading game with people from all over the world. Now you need to take money from their wallets.
How to take it?
Use slow money to make quick money, and use smart money to make dumb people's money.
Most people in this world are impatient, lack strategy, and act recklessly. Most people enter trades based on a 'fierce' approach, rarely paying attention to their positions, entry timing, and risk levels.
They only focus on how to make quick profits, so they rush in and out, betting big to win big, and then liquidate their positions.
They make trades for profits and losses of dozens of points, but if you extend your trades a bit, targeting 200 points for profit and stop-loss, your chances of winning increase.
Your capital will consume such funds, and it's not about how smart or patient you are; in fact, you are leveraging a very key factor - 'cycles'.
When Bitcoin was priced at 3000 USD, it fluctuated about dozens of points daily; at 10000 USD, it was 200 points; at 30000 USD, it fluctuated 1000 points daily; and at the current price of 69814, it fluctuates around 2000 points daily.
But your forced liquidation price can only withstand... 300 points of fluctuation. I understand your ambition, but you can't treat fluctuations lightly!
This knowledge should not be understood only after you are liquidated, but rather you should understand it right now!
Control your risk well; it doesn't matter if you open a contract with 1000x leverage, you just need to care about where your risk level is. For example, this bull market is a large cycle with countless small cycles nested within it. These small cycles fluctuate back and forth, always moving towards a peak of a bull market. You need to determine where the low point of a current small cycle is, which is unlikely to be broken, and then trade within this cycle without looking at resistance or support levels. In this small cycle, your trade is the strongest.
Today I want to share a set of contract trading rules that I have been following for many years: 100x contracts, which may seem risky at first glance, are actually the investment type that brings me the most profit and has the highest win rate. Initially, I was quite confused about this, but I gradually realized it was largely due to my unintentional adherence to a clear set of trading rules:
1. Total capital setting: The funds I use for contract trading are always fixed. For example, the amount for one account is always 300U. This means my maximum loss is 300U, and if the market trend is favorable, I have the opportunity to gain tens of thousands of U in profits. This setting allows me to keep risks manageable while seizing profit opportunities from significant market movements.
2. Initial amount: I always start with a very low trading amount, based on the philosophy of stock market trader Livermore. He believed that if the beginning is correct, then it’s best to start making money right away. Thus, the amount I use to test the waters is always small, even if my total capital is 300U, I often start with just single or double-digit U. This ensures I am profitable from the very beginning of the trade.
3. Position increase strategy: I only increase my position using profits when there are profits and the trend is clear. This strategy allows me to further amplify profits during favorable market trends while avoiding increasing risk in adverse market conditions.
4. Stop-loss setting: I will adjust the stop-loss position timely based on market conditions to ensure I don't lose my principal. This is a crucial principle I adhere to in trading; it helps me stay calm during market fluctuations and avoid emotional trading decisions.
These four rules have implicitly enforced strict trading discipline on me, and their underlying logic is equally applicable to ordinary low-leverage contracts because the reasoning is the same. Of course, before starting, I still want to remind novice players:
Contract trading is no joke, especially for those who think there are some contract tricks or masters who can predict prices. Don't blindly believe that just listening to them will help you make a fortune; this is a mindset you must avoid. I certainly don't have any secrets that will make you rich just by hearing them.