How can an investor with 3,000 yuan (about 400u) in the cryptocurrency world achieve steady value-added in a market where risks and opportunities coexist? Contract trading, combined with sophisticated position management, may be a path worth exploring. But please note that the strategy here does not encourage blind all-in, but advocates a planned and disciplined investment approach.
Your initial capital and plan the investment for each transaction reasonably. For example, you can divide 400u into four parts and use only 100u for each transaction. Choose hot currencies, set stop-profit and stop-loss, and ensure that the risk of each transaction is controllable. Remember, cryptocurrency investment requires a certain amount of luck, but more importantly, strategy and discipline.
When you successfully increase your principal to $1100 through several trades, you can consider adopting a more diversified investment strategy. This includes ultra-short orders, strategy orders, and trend orders.
Ultra-short orders, suitable for investors who prefer quick trades and fast attacks, mainly focusing on 15-minute level transactions. The advantage of this strategy lies in its high returns, but the risks are also relatively large. Therefore, it is recommended to trade only mainstream currencies such as Bitcoin and Ethereum to reduce risk.
Strategy orders involve using small positions for medium to long-term investments. For example, you can use $15 of funds to conduct four-hour level contract trading, set aside the profits, and regularly invest in mainstream currencies like Bitcoin weekly. This strategy maintains liquidity of funds while enjoying the compound effect of long-term investment.
Trend orders represent medium to long-term trading. When you spot a market trend, you can decisively enter the market and set a relatively high cost-performance ratio for profit and loss. The advantage of this strategy is that it yields more substantial gains, but it requires investors to have a high level of market insight and patience.
In contract trading, I have summarized a set of clear trading rules, which are also applicable to ordinary low-leverage contracts:
Total fund setting: Fixed funds allocated for contract trading to ensure that the maximum loss is manageable. For instance, if an account always has $300, even if the market trend is unfavorable, it won't greatly impact your overall capital.
Initial amount: The initial trading amount should be low, based on the concept of 'if the start is correct, it's best to start making money right away.' Even if the total fund is $300, the initial amount should only be in single or double digits to ensure profitability from the beginning.
Position-adding strategy: Only use profits to add positions when profits occur and the trend is clear. This allows for amplifying profits further when the market trend is favorable while avoiding increasing risk in an unfavorable market environment.
Stop-loss setting: Adjust the stop-loss position in a timely manner based on market conditions to ensure that the principal will not be lost. This is an important principle to uphold in trading, helping to maintain calmness and avoid emotional trading decisions.
Finally, I want to emphasize that contract trading is not a child's play. Do not blindly trust so-called contract skills or master predictions, but rather develop a reasonable investment strategy based on your actual situation and risk tolerance. Remember, steady investment and long-term holding are the key to success in the cryptocurrency market.
