In a bull market, effectively reducing the risk of being trapped (exploding) is a key concern of investors. The following will be analyzed in depth from multiple key aspects:
1. Currency selection strategy
- Mainstream coins, leading coins, potential coins (suitable for medium and long-term investment): For investors who tend to operate in the medium and long term, mainstream coins, leading coins and potential coins are more ideal choices. Mainstream coins usually have a deep market foundation, wide recognition and relatively stable value support, such as Bitcoin and Ethereum. They have been tested for a long time in the market and have strong risk resistance. Leading coins often occupy a dominant position in their respective fields and lead the development trend of the industry. Their market performance has strong consistency and stability. Potential coins are those that are still small in scale at this stage, but have a large growth space based on factors such as good project background, innovative technology applications or potential market demand.
2. Explanation of the importance of position management
Reasonable position allocation plays a pivotal role in the investment process, whether it is contract trading or spot trading.
- Contract trading: Contract trading has leveraged attributes. When the position allocation is unreasonable, the market fluctuates violently, such as the appearance of a "needle" pattern (i.e., the price fluctuates sharply in an instant), which is very likely to cause the investor's margin to be instantly depleted, thereby triggering a liquidation. The amplification effect of leverage brings high return expectations while also multiplying the risk, so scientific position control is the key line of defense against liquidation risks.
III. Details of reasonable position allocation
- Spot position allocation: In spot trading, there is an important principle that "don't put all your eggs in one basket", which is often referred to as a diversified investment strategy. This strategy is not only for novices entering the investment circle, but is actually universal for all types of investors.
- Contract position allocation:
- Avoid excessive long positions: holding too many long positions
- Eliminate heavy positions: Heavy positions in contract trading are like walking on a tightrope. Any unexpected reverse fluctuations may lead to devastating consequences. Positions must be reasonably allocated in strict accordance with the fund's tolerance.
- Set stop loss reasonably and do not hold orders: stop loss is the key means of controlling risks
