Contract Trading Depth Strategy: How to Avoid Losses and Achieve Stable Profits?
Based on my own trading experience, I have come up with several commonly used trading methods:
The first method is to heavily invest in short-term trades, where profits can be seen in just a few seconds. It feels great to make some money each time, but it's all small amounts. However, if there is a misjudgment and a position is held, all previous gains can be lost along with additional losses. This path cannot be traveled far.
The second method is to only buy on dips. But during a bull market, buying on dips is not effective because everything that should rise has already risen. Buying on dips requires waiting for a bear market, when new lows have been reached. After buying, patience is necessary, and the position cannot be too heavy. It's like running a small shop; during normal times, there may be little business, but once it opens, a big profit can be made. This path is stable and reliable.
The third method is to arbitrage during fluctuations, suitable for choppy markets, where one can steadily earn some profit. However, if faced with a trending market or a volatile coin, problems can arise, leading to significant losses. Those who do not have a deep understanding of trading should avoid this.
The fourth method is to short at the top; this method brings fast profits, as one can earn as soon as a major top signal appears. But the problem is that major tops are rare. You must watch the market and wait, sometimes for three to five days without seeing one. Most people lack that patience, and once they see a rise, they get anxious, resulting in often losing more than they earn.
