Contract Trading Rules

If you have been losing money in the cryptocurrency world for more than two years, I advise you to quit as soon as possible because you can't make a living from it.

 

First of all, let me give you a word of advice: if you want to think about the benefits, you must also consider the disadvantages; if you want to think about the success, you must also consider the failure.

When you come to this market, you should first think of ways to protect your principal, rather than thinking about how to double your capital. If it were that easy, everyone would become rich, but it would not be your turn. Secondly, you should integrate knowledge and action. What is the integration of knowledge and action? Every time you open an order, you must have a clear stop loss, a reasonable position to increase your position, and a position that can withstand loneliness and stop profit. Then consider the probability, winning rate, and profit-loss ratio. I will talk about technical strategies later. First of all, I would like to correct your mentality and order-making ideas.

 

My current idea of ​​trading is to use the Martingale method with the trend and the Martingale grid method against the trend, and then the technique I use is low income with high probability, rather than high income with high odds as in normal contracts. Because of the low income with high probability, the pressure on the trader and the accuracy of market judgment are relatively lower, and the tolerance rate is higher, which means that the winning rate will be higher, and a higher winning rate means that a small amount can be turned into a large amount.

 

First Leverage

Second Position

Third, mentality

Fourth Strategy

Fifth: Empty Position

 

 

Don’t underestimate the leverage, the starting point is 100 times or 125 times. Simply speaking, if a currency drops by 2%, you will lose 200%. So try to choose a multiple that is suitable for you. Now the market conditions are better and the exchanges are more formal, and there are fewer things like slippage, so I won’t talk about this.

As for the position, I suggest you divide your position into 100 or 500, or even 1,000. The first time you open a position, only open 0.1% or 0.2%. When the market is in the expected direction, you can try to increase your position to adjust your position, so that your average price is in a better position, or increase or decrease your position between each market to make a profit. If a market is not bad when your position reaches 2-3%, then you may have a profit after a callback. Then, if you hold a position within the predicted market, you need to have a clear stop loss position to prevent black swan events.

 

Speaking of mentality, if you open a position of 10% or 20% at a time, if the market is going in the right direction, you may double your money after 4 orders, but your mentality should be tense. Short-term success will make you feel lucky and develop a bad habit of all-in. You will also resist losses and fail to hold on to profits, resulting in small profits and big losses. Reflect on it, if your position is not heavy, will your mentality be better? When trading, learn to hold orders for a long time, use time to exchange space, and you will also increase your winning rate.

 

The second is strategy, that is, technical indicators, in which range to place orders, where is the bottom, where is the top, follow the trend to look at 15, 1 hour. 4 hours, daily, or weekly. At this level, it is recommended to do the first and second stages well first, and then study the technical indicators.

 

The next thing is to be short. You need to learn to be short and keep yourself out of it so that you can better capture profit opportunities and escape the top. With U in hand, you will have more opportunities. Don't let your judgment be affected by holding positions.

 

Trading skills

Learn to stop loss; within an expected market situation, if the market goes bad, then strictly stop loss, protect the principal, and find a new position to enter the market.

Take profit in batches; a long order of 1000 can be taken profit at multiple take profit levels at 1050 1075 1095 1125 to gain more profits.

Position protection: When you are making a profit, you can set the opening price to prevent yourself from being trapped in your order due to not having time to watch the market.

Rolling positions; you can add or reduce positions in the consolidation range and keep a part of the profit in your pocket. For example, if you opened 10 long positions at the average opening price of 1000 and the market is hovering around 1050 and has not yet broken through the pressure level of 1065, you can reduce 5 of them and keep half of the profit in your pocket. When the market falls back to 1020 or 1010, you can add these 5 more positions back in turn.

Open a position opposite to yours; in a very obvious one-way market, your opening price is 1000 short, and the market keeps rising. You can open a long order and trade short for 15 minutes. You can open a position opposite to yours and trade short. (Newbies who don't understand the market trend may make mistakes to prevent locking orders and causing empty orders)

Learn to reduce your positions; when the market trend is not a normal correction, learn to reduce your positions first, and if it reaches the stop loss level, then stop loss strictly.

Learn to increase positions; learn to reduce positions, then you will increase positions to pull the average price. First learn to reduce, then learn to increase. If the market opens an order at 1000 and breaks through the 1065 pressure level, and will not fall back to 1030 in a short time, then add another layer of positions and the average price will be at 1030. If the main market continues to stretch above 1100, then you will make twice as much money. At the same time, set the position protection at 1035, and always respect the market.

The average price is pulled up by the cover order; for a long order of 1000, if the current price drops to 900 and does not fall below your stop loss line of 850, then add to the position at 900, and when the market rebounds to 920, 930, and 950, subtract the amount you added at 900 in sequence. Although you are losing money at the moment, you have lowered the average price, and you can treat the amount subtracted from 920, 930, and 950 in sequence as a new order opened at 900. Wouldn’t you feel more comfortable in this way? If the market rebounds to 1000, your entire order will make money. So you must learn to reduce your position before adding to it.