#MyFirstSquarePost For example, with ten thousand dollars, leverage suggests 100x
Each trade's overall position should not occupy more than 5% of the total principal, which is 10,000 dollars, allowing for an operational space of 500 dollars.
Divide this 500 dollars into 3 parts or 5 parts for trading.
If the market is unclear and you want to try to catch the top or bottom, then the margin for establishing the initial position should not exceed 100 dollars, which is 1% of the position.
If the market goes smoothly down or up, you can consider a short-term exit plan of over 2000 points for this order.
If the market does not go well, going down or up against you, then for this order, you can consider adding a margin of 100 dollars when the reverse reaches over 2000 points to average your price. This way, you can reduce the position by 100 dollars to continue holding, or close everything and wait for another opportunity to enter. If it continues to reverse, then consider adding a margin of 300 dollars when the reverse exceeds 4000 points.
Note: This trade needs to be closed or reduced while reaching the average price, and continue holding while looking down or up. In a day, do not exceed three trades.
Such trading will significantly improve your trading mentality and skills, while also avoiding the awkward situation of holding positions until liquidation.
In extreme market conditions, the drawdown of a single trade should not exceed 5% of the principal.
Similarly, this trading method won't earn a lot, but it will steadily grow your principal.
Persisting with my method for a month will enhance your confidence and trading logic.
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