Practical tips for contract trading in the cryptocurrency world:
Before trading:
- Knowledge reserve: You need to fully understand contract trading, how to use leverage, when to trade, how to settle, and the characteristics of currencies like Bitcoin and Ethereum.
- Simulated warm-up: Practice on a simulation platform first to familiarize yourself with operations, feel the market's ups and downs, and try different strategies, and importantly, you won’t lose real money.
During trading:
- Identify trends: This is crucial. Use technical tools like moving averages to keep an eye on short-term and medium-term price trends, and combine this with industry news and policy directions to grasp the big picture. If the country supports digital currencies, the currency might just rise.
- Use leverage wisely: Leverage has clear pros and cons. Beginners should start with 2-3 times leverage, and adjust as they gain experience and strengthen risk control. The position size should be calculated based on funds and risk tolerance.
- Set profit and loss targets: Setting take-profit and stop-loss levels is very important. Use a trailing stop method for take-profit, moving the take-profit point up as the price rises to maximize profits; be decisive with stop-loss, close positions immediately when the line is hit to minimize losses.
After trading:
- Review and record: Regularly review trades and analyze successes and failures. If frequent operations during high volatility lead to losses, you need to adjust your mindset and change your strategy.
- Optimize strategy: Optimize based on reviews. If you find a certain indicator works well for specific currencies, use it more; if it’s not suitable for ultra-short-term trading, switch to medium or long-term trading.
Recently, I plan to stealthily invest in a potential coin that is ready to explode; doubling it is quite simple. At the same time, I am also looking for some potential coins to hold until the end of the year, expecting a growth space of over 10 times is not a problem. If you want to follow along, watch my updates, leave a message, follow, like, and join my group.
