Wang Xiaozhang, KOL

To trade digital currency, you need three skills: one is to be familiar with the market, the second is to master the technical points, and the third is to use operational tactics. Today I will share with you the five major tactics in digital currency contract operations:

Point 1: Risk control is the first

Under normal circumstances, investors will put risk control first, mainly because effective risk control can limit possible capital losses to a certain range, thereby avoiding unbearable losses when risk events occur, protecting the principal, risk first, and profit later.

After all, the principal is the prerequisite for investors to carry out all operations. Without the principal, investors will lose the qualification to enter the market. It can be seen that when making orders, investors must resolutely take risk control measures and strictly implement the stop loss and stop profit plan.

Point 2: Fund management is the most critical

For investors, fund management helps to improve the efficiency of fund utilization and save costs. Investors should make reasonable fund allocation according to the actual situation of the digital currency market. For example, if the current market trend is unclear, if investors rashly invest most of the funds, they will face relatively large unknown risks, and this fund may be gone without return.

In addition, investors should also manage funds according to their own operating style. For example, investors who pursue stable insurance can build positions with 5% to 15% of funds, or consider entering the market in batches to reduce risks.

Point 3: Reduce unnecessary transactions

The success of investment does not lie in how many transactions investors make, but the key is to see the amount of profit obtained in each transaction. We can see that when making orders, there are some transactions that seem to be successful, but after deducting costs such as handling fees, the profit is gone.

Such small market conditions do not meet the interests of investors, and such transactions should be reduced. Although there are not many big market conditions, as long as you concentrate on the right direction, it is still a considerable amount. Therefore, investors should wait patiently for the arrival of big market conditions and trade appropriately to maximize their interests.

Point 4: Technical experience support

Analysis of digital currency market trends cannot be separated from technical support.In different market stages, investors need to adopt different analysis methods. At the same time, choosing the right technical analysis tools is a help for investors to correctly judge the market trend.

The accumulation of experience can help investors operate more skillfully, learn lessons, and avoid the same mistakes again. Therefore, investors should focus on improving their own analysis level and accumulating experience.

Point 5: Overcoming bad investment psychology

In the process of trading, some investors suffer losses because of their psychological problems. For example, greed turns investors' profitable orders into losses, the psychology of not admitting losses leads to further expansion of losses, and fear makes them miss the best time to make orders, etc.

Therefore, overcoming bad investment psychology is more conducive to investors' smooth trading and gaining profits.

For any industry, there is always a proportional relationship between risk and return, and the opportunity cost of any industry is 0. High returns in the investment market are inevitably accompanied by high risks. Therefore, the four principles that need to be paid attention to in the investment market are: keep the principal, control risks, earn returns, and maintain long-term stable profits.