First of all, we can think about how we can make money in this market. In the financial market, what is often lacking is not opportunities, but those who can survive in the market for a long time. How to survive in the market for a long time? Then the first thing is to manage our funds well, that is, how to protect our principal. Therefore, the fund management system is introduced.
Simply put, there are two types of trading. Day trading is also possible, and it needs to be used as short-term trading. Swing trading.
First of all, intraday trading is mainly short-term. The profit and loss ratio is generally 1:1. In this case, we generally cannot open a single position exceeding 5% of the total position, and the total position cannot exceed 10% of the total position.
The second type is swing trading. The profit and loss ratio of swing trading is generally 1:5, 1:6, 1:10. However, the risk of swing trading is very high. Therefore, we have to open positions in multiple times. The first time is an aggressive opening. It does not exceed 10% of the total position. If the subsequent trend is confirmed and as we expected, we can increase the position when the market falls back. The total opening position cannot exceed 50% of the total position. $BTC
