What losses have you suffered in the process of cryptocurrency trading?
Most people who play contracts have experienced liquidation, and I believe most people have experienced the feeling of going from excitement to paralysis.
First of all, stop loss: if you don’t know how to stop loss, it is impossible to make stable profits!
There are only three reasons for our liquidation: first, high leverage, second, holding orders, and third, playing with copycats and being pierced. Now that we know the reasons, we can prescribe the right medicine.
1. High leverage: In fact, many people start with very low leverage, but after experiencing several consecutive losses, they want to quickly recover their capital through high leverage, or after consecutive losses, their funds shrink rapidly, and they feel that normal leverage has no hope of recovering their capital, but the fluctuation of high leverage in minutes may lead to liquidation.
2. Holding orders: A common problem for most players, they will hold on to their losses and refuse to admit defeat, and even continue to add margin until there is nothing left to add. This kind of liquidation is the most uncomfortable, and they will lose everything directly.
3. Playing the copycat: I think that Bitcoin has low volatility, and I want to quickly gain profits or quickly recover my capital through the copycat with high volatility. However, many copycat dealers have serious control, and they will go up and down from time to time. No matter whether you are long or short, small leverage or large leverage will explode.
So: My stop loss strategy is to stop loss when the position is blown up! Since there is a probability of a position being blown up, why don’t I stop loss directly with the position being blown up? 棉废村威huan722315
Of course, my stop loss for a position being blown up is quantitative. Generally, I can accept a loss of 1/20 of the funds, so I will use 1/20 of the funds to open a position. The stop loss line is this 1/20 of the funds. The leverage multiples can be 5 times, 10 times, or 100 times, because the maximum loss is 1/20. (Of course, if you have a strong risk tolerance, you can even use 1/10 of the funds, and if you have a low risk tolerance, you can open a position with 1/50 or 1/100 of the funds)
Discipline of stop loss: This discipline is very important and must be followed, that is, you cannot cover your position, and you cannot increase your position after a loss. In simple terms, after losing 1/20 of the funds, you cannot add margin to hold the order, and after losing another 1/20 of the funds, the funds cannot be greater than 1/20 when opening a position next time.
This stop-loss plan has avoided two of the three major factors of liquidation (high leverage and copycats). The only discipline to be implemented is not to cover the position and not to increase the amount of the next position after a loss.
This round of bull market is volatile. If you haven't found the right direction yet, you might as well click on the avatar and Zhuye signature to find me and plan for the next bull market together!
