1. Control position
Because only by reasonably controlling the position can you have a stable opportunity for profit, otherwise, your account will only end in failure. Generally, invest 10% of your funds in the market. If your account funds are only $10,000, then each time you enter a trade, it is $1,000, regardless of whether it is long or short!
In a favorable market situation, if the entry order is profitable, the stop-loss position is the opening price, and no matter how confident you are in the market, do not take too heavy a position. If the entry order is at a loss, never increase your position against the market unless you have hundreds of billions in funds to support it.
[Position Management]
Managing contract positions is very important. For example, if your account funds are $10,000, then the margin for your trades should ideally be 5-10%, which is $500-$1,000, 50-100 lots. These 50-100 lots can be divided into 2 or 3 entries at different points.
[Supplementary Order Skills]
If the leverage is the same for the supplementary order, then the next step is to supplement the positions, with a position ratio of 1:2:3. For example, the first order is 10 lots, the second order is 20 lots, and the third order is 30 lots; if the initial leverage is 20 times, the second order with the same position is 50 times, and the third order position is 100 times, with a maximum of three orders, the total of these three positions should be one-tenth of your total position. Flexible supplement of leverage and position numbers, so that you can quickly recover or profit out!
[Leverage Skills]
1. The size of leverage depends on the market size. In a big market, take long positions with small leverage to withstand risks.
2. Quick entry and exit, high leverage, quick returns, generally recommended to take profits around 30-50%, because market conditions change too quickly, we need to learn to respect the market and stop at the right time. That's all for now.
Additionally, I remind everyone! The cryptocurrency market is full of uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the relevant risks when participating in cryptocurrency investments, remain calm and rational, and respond to market changes with a prudent strategy!
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