1. Market Analysis
There are unilateral and volatile markets in the cryptocurrency market. Generally, unilateral market only occurs within a period of time, and the cryptocurrency market has a unilateral rise or fall. This kind of market is the best to trade. Investors only need to buy on dips or sell on rallies. In a directionless market, it is not suitable for medium and long-term trading. You can only trade in the short term, buy low and sell high, and run when you make a profit.
2. Analyze Trends
The second step is to look at the trend. You can refer to the daily K-line, weekly K-line or monthly K-line, and analyze the long-term factors that affect the mainstream currency, so as to judge whether the mainstream currency will rise or fall in a period of time. If you do not look at the trend before entering the market, and blindly chase the rise and fall, you can only leave the market dismally. After the trend is judged, it is better to set a rough operation goal. It can be said that judging the trend well is half right.
3. Look at the position
Even if the trend is good, you can't rush into the market. You should choose a good point first, otherwise it is easy to be squeezed out by the market. For example, the cryptocurrency market has been on the rise recently, but many people who are long still lose money. Why? It's because the entry point is not chosen well.
4. Choose the right time
The cryptocurrency market has its own rules. Generally, January to May is the rising season, and you can buy on dips. From May to September, the market fluctuates downward, with a certain increase in the middle, so you can buy low and sell high. The second half of the year is mostly a sharp drop or a sharp rise, and it is also the most profitable period.
5. Control your position
Because only by properly controlling your positions can you have a chance to make stable profits, otherwise, your account will only fail. Generally, 10% of your funds will be invested in the market. If your account funds are only 10,000 US dollars, then each time you enter an order, it is 1,000 US dollars, whether it is long or short. In the case of good market conditions, if the entry order is profitable, the stop loss position is the opening price. No matter how sure you are of the market, the position should not be too heavy. If the entry order is losing money, do not increase the position against the market, unless you have tens of billions of funds to support it. Similarly, for a 5,000 US dollar account, it is best to make 500 orders.
BTC perpetual contract position building strategy: position management and leverage skills
【Position Management】
It is very important to manage contract positions. For example, if you have 10,000 USD in your account, then the best margin for your order is 5-10%, that is, 500-1,000 USD, 50-100 lots. For these 50-100 lots, investors can enter the market at different points in 2 or 3 times.
【Order filling skills】
If the leverage is the same, the next step is to cover the position, and the position ratio is 1:2:3. For example, the first order is 10 lots, the second order is 20 lots, and the third order is 30 lots; if the leverage is 20 times at the beginning, the second order is 50 times, and the third order is 100 times. There are a maximum of three orders, and the positions of these three orders add up to one tenth of your total position. Flexible cover leverage and position number, so that you can instantly recover or exit with profit!
【Leverage Skills】
1. The size of leverage is determined according to the market size. For long-term investment in a large market, use small leverage to resist risks.
2. Quick entry and exit, large leverage, and quick returns. It is generally recommended to stop profit at around 30-50% profit. Because the market changes too quickly, we must learn to respect the market and stop at the right time.
【Warm Suggestions】Correct your attitude and study hard. Build positions scientifically and operate rigorously. Control positions, adjust margins as soon as orders are placed, and set stop-profit and stop-loss. Don’t gamble or be greedy, enter and exit quickly, operate flexibly, and stop profits in time. It is forbidden to resist orders and it is forbidden to go all-in. Investment is risky, so be cautious when entering the market and bear the risks yourself.
