How should funds be allocated?

To understand fund allocation from the perspective of risk, we must first clarify how much loss our account can or is prepared to bear. This is the basis for our thinking about fund allocation.

After the total amount is determined, we will consider that if we fail continuously in the market, we should at least divide the losses into several times to give to the market, so that we can willingly admit our bad luck and failure.

I personally think that the most risky method should be divided into 10 times. In other words, you should give yourself at least 10 chances.

Grasp the overall market trend

It is much more difficult to follow a trend than to follow a shock, because the trend is to chase highs and sell lows, and one must have the determination to hold positions, while buying high and selling low is in line with human nature.

The more trading conforms to human nature, the less money you make. It is precisely because it is difficult that you can make money.

In an upward trend, any violent pullback should be chosen to go long. Remember what I said about probability? So, if you

If you are not on the bus or have gotten off the bus, wait patiently. If the market drops by 10-20%, be bold and buy more.

Specify stop-loss and take-profit targets

Stop-profit and stop-loss can be said to be the key to whether we can make a profit. We must make the total profit greater than the total loss.

Each stop loss is ≤ 5% of the total funds, each profit is > 5% of the total funds, and the total transaction winning rate is > 50%

Profits can be achieved by meeting the above requirements (profit-loss ratio greater than 1 and winning rate greater than 50%). Of course, a high profit-loss ratio and low winning rate are also possible.

Beware of excessive trading

Contracts are traded 24 hours a day. Many novices trade every day. They wish they could trade every day. As the saying goes: If you walk by the river, you will get your feet wet.

If you operate too much, you will always fail. After a failure, your mentality will become bad. Once your mentality becomes bad, you may act impulsively and choose "revenge" operations, which may go against the trend or involve heavy positions. This will lead to one wrong step after another and it is easy to cause huge losses on the books, which may not be recovered for several years.

Contract entry timing

Many people open orders 24 hours a day, which is no different from sending money. The purpose of the contract is to make a relatively stable profit strategy with controllable risks and relatively stable indicators, rather than clicking 100 times to buy and then get rich! Therefore, the timing of entering the contract is particularly important!

Don't open orders during periods of strong upside or downside, because the market is very chaotic at this time, with the range fluctuating between 1-3%. If you choose to gamble on the market at this time, you will easily be taken away by the heaven and earth needle

I usually choose to enter the market after the second bottoming out or rising trend after a larger fluctuation, because after the second wave of market fluctuations, the market fluctuations will gradually stabilize.

The subsequent interval has the lowest risk factor. The purpose of the contract is to make the most appropriate strategy with small bets.#加密市场反弹 #美联储宣布降息50个基点 #美国大选如何影响加密产业? #token2049 #新币挖矿HMSTR