Hundred-fold contracts seem to be very risky, but they are the category with the highest profit and the highest winning rate for many people. Later, I understood the reason and played according to the four determined rules:
1️⃣Total warehouse determination: For example, the funds used by an account to play contracts are always 300U, and the maximum loss is 300U. If you make money, it will be tens of thousands of U in a big market.
2️⃣Starting amount determination: The starting amount is extremely low. The principle is what the stock tycoon Livermore said, if you are right, it is best to make money from the beginning, so the starting amount for testing the water is extremely small. 300U full warehouse, the starting amount is often 10U or something like that.
3️⃣Adding positions determination: Adding positions must be done with profits, and only when profits appear and trends appear, consider adding positions.
4️⃣Stop loss position: Adjust the stop loss position in time to ensure that the principal is not lost.
The logic behind these four rules can also be used for ordinary low-multiple contracts, and the principles are the same.
Of course, before you start, you still need to make a risk warning:
Those who think that there is some contract technique or some contract master who can predict the price, and you can make a lot of money as long as you listen to him, don't touch it. Anyway, I don't have the ability to give you a tip, and you will get rich directly. Moreover, contracts are very challenging to human nature, unless you can insist on using only a very small amount of money, such as 100U, 300U, etc., so that it is in line with "small bets for big", not "big bets for small". I hope to give some reference to contract players, that's all.
Main skills:
1. Starting skills
Assuming that BTC is 60000U now, it has been fluctuating for a long time, I am still bearish and look forward to a big market. It is recommended to start with 10U, 100X.
After opening, don't worry about the decline, unless the position is blown up, just watch the show and stay calm-it is equivalent to choosing a direction before you open it. In the short term, you should have more than 70% confidence, and it is best to expect a big market.
2. Tips for adding positions
For example, if the market indeed falls below 60,000, and there is a huge negative news, and you combine the trading volume, MACD and other observations and feel that there is a great chance of a big drop, then you should consider adding positions, and use the profits to add positions. In fact, this is commonly known as rolling positions, which is almost the key to small funds to fight big, but at the same time, rolling positions is a technical job, and most people’s positions are blown up here.
Here is the method: At this time, the market is falling, the order has made a profit, and 300U has become 400U. Before adding positions, it is observed that the profit has reached 100U. Then, after adding positions, it is recommended to set a stop loss, which means a loss of 100U, and finally there is still 300U of principal.
Because we have made money at this time, and the direction is likely to be right, there is no reason to take risks with the principal. At this time, you should note that if you set a stop loss of 100U, it actually means that your original position is 300U of principal, and now it is a profit of 100U. If you increase the position, it may be stopped at any time.
Because, at this time, you can actually take steps. The first step is to set a stop loss of 100U. Don't rush to add it. Wait until the profit expands and then add a little bit, a little bit, and it is best to stop the shock.
The secret here is not to be greedy. If you are not sure, don't even add it. The 100-fold contract is really fierce when you make money, and the same is true when you lose money. There is also a timing issue that needs special attention when adding positions. It is best to add positions when there is a small rebound during a decline, or to add positions when there is a small pullback during an increase. In this case, the 2B structure is particularly useful and worth learning.
It is best to add positions only two or three times, and then watch the market run. The more you add, the more dangerous it is when there is a pullback.
4. Other supplements
Short-term high multiples are the correct way to play contracts, with high risks but higher returns.
1️⃣ To form your own system, in the trading system, there is no holy grail.
We can see that the long-term actual combat records of short-term masters such as Ram Williams and CIS are very good, and the former's books have also sold a lot, but I haven't seen the second Williams, because everyone's mentality and system change slightly, and the results of the transaction are very different. Therefore, if you want to wear the crown, you must bear its weight. Form a trading system of your own, enjoy its benefits, accept its shortcomings, constantly summarize market laws, and constantly repair them to succeed.
2️⃣ Understand the profit and loss ratio.
In the trading system, the profit-loss ratio is the most important content. The real profit formula is: profit-loss-handling fee>0. There are three basic modes in trading:
One is high profit-loss ratio + low winning rate + low frequency. Trend tracking, medium and long term.For example, a fat otaku Bitcoin with a capital of 100,000 yuan achieved a small goal in the 2021 bull market, which is actually a trend trader.
Second, low profit and loss ratio + high win rate + high frequency. In the short-term master mode, the profit and loss ratio is often 1:1, which is very poor. Only some legendary figures can do it. I don’t think I can do it. There is another type of people in this industry who seem to be quantitative high-frequency and eat the exchange fee spread, which is relatively high-end.
Third, terrifying profit and loss ratio + medium win rate + extremely low frequency. The thousand times I talked about is my own classification, called the third category, which is also a unique benefit in the currency circle:
Big data shows that the winning rate of retail investors is about 33%.
In fact, from the perspective of comprehensive strategy and tactics, there is a system with a high win rate and low profit and loss ratio and a system with a low win rate and high profit and loss ratio. Therefore, there is no need to dogmatically believe that there is only a low win rate and high profit and loss ratio. The profit and loss ratio must reach more than 3:1. A 10% win rate or a 90% win rate can create a successful trading system.
Since both high and low winning rates can be successful, there is no need to worry about whether to do long-term or short-term trading. You can even mix the two. The important thing is to find a trading method that suits you when the relevant trading strategies and tactics are well matched.
