The most stable way to trade contracts in the crypto world #btc
Choose the right coin and be a good person. As a leveraged trader, volatility can be amplified by the leverage multiplier; the primary consideration during trading should not be volatility but certainty.
In a rising market, go long on strong coins; conversely, in a falling market, short the weakest coins.
For example, when a new quarter begins, the strongest performers are eos and eth. When there is a pullback, these two coins are the first choices for going long, while Bitcoin is the first choice for going short. Even if the final result shows that mainstream coins have larger declines than Bitcoin, only shorting or chasing Bitcoin can greatly avoid the risk of violent rebounds. #Bitcoin
Most people in the crypto world are short-term traders, and it is difficult to hold positions until the ideal exit point during trading. They are also not very skilled at position control and cannot rely on fluctuations to average down; based on this situation, for most traders, a good entry price is better than anything else.
Once there is a profit, take some off the table to secure gains, and set a stop-loss at the cost price for the remaining portion. This is something I have always emphasized.
The essence of contract trading strategy
(1) Identify the main trend and trade in the direction of the main trend; otherwise, do not enter the market.
(2) If you are trading in line with the trend, entry points include:
1. New breakout points of the trend;
2. Breakout points of sideways consolidation trending in a certain direction;
3. Pullback points in an uptrend or rebound points in a downtrend.
(3) Following the trend will bring you substantial profits; never exit early; #Cryptocurrency
(4) If your entry aligns with the major trend and your paper profit proves you are correct, you can implement a pyramid-style technique for increasing your position (see reference two);
(5) Maintain your position until the trend reverses and exit.
(6) If the market trend is opposite your entry, cut losses and run.
In addition to adhering to the above strategies, remember these three qualities: discipline, discipline, and more discipline!
The way of trading is to accumulate small gains, compounding is king. If you deviate from your cost price, you must firmly avoid turning back into a loss. If you have made a profit, make sure to secure a portion to prevent it from being for nothing. In summary, the saying goes: if you earn, be bold to take it; the remaining amount should be at the original price loss.