Insights from trading experts, everyone should ponder carefully!
The article below is filled with valuable content. Understanding it will definitely help you walk more steadily and further on the cryptocurrency path.
For example, if you are bearish on the 3730 point, set your stop-loss at 3760. If you haven't reached the key entry point yet, just carry the stop-loss and directly place a market order, just like our trading model—don't change it.
Stop-loss should be as natural as eating and drinking; don't overthink it. Our trading model has been perfected through countless verifications and trial-and-error. If you can't even copy it, it will be really hard to survive in this market.
Remember, never hold onto losing positions! No matter how many times you bring it back, just one misjudgment can lead to total failure. For instance, we were bearish at 2700, and the market surprisingly rose to 3750.
But what are we afraid of? At most, we lose a few dozen points on each stop-loss. When the market reaches a high, hold your shorts, and a slight drop will generate profit. The market rose by 1000 points, and not only did we not lose, but we also made a profit with our trend short position. But if you are using high leverage and holding a losing position, don’t say 1000 points; even 200 points could kick you out of the game.
Position allocation is also very important. For example, if you have a total position of 1000U, put 80% in the spot account and 20% in the contract account. Each time you open a position, don't exceed 20%, which is 200U. After a stop-loss, replenish from the spot account to maintain 200U in opening funds.
Also, if you didn't enter at the key position and entered midway, you should lower the leverage from 10x to 3-5x. This reduces risk, but the returns will also be smaller!
Finally, don't forget to compound your profits when you make money. For instance, if your total position rises from 1000U to 2000U, then each sub-position is 400U. This way, you can snowball your money, and it becomes easier to play with!
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