1. Short-term Cryptocurrency Trading
_In contracts, this is the most common play, and it's also the first method for newcomers to enter the crypto world. This method carries a lot of risks, and often profits are obtained through luck, with earnings usually not enough to cover a single loss._
2. Learn to Take Profits and Cut Losses
In contracts, taking profits and cutting losses is very important. The market is highly volatile, and prices can change rapidly. Setting stop losses allows you to close positions in unfavorable market conditions, preventing significant losses. A good profit-taking strategy can help secure profits and prevent losing your gains due to market reversals, as well as help you manage your profit points effectively.
3. Discipline in Trading.
In contract trading, one often faces greed, fear, and emotional influences, which are major factors leading to losses. Before each entry, set your profit-taking and stop-loss levels. Maintain your trading rhythm to reduce emotional interference in your decisions. Set a trading plan for yourself, including the number of trades per day. Do not think about re-entering the market to recover losses after a setback, as this often leads to even larger losses along the way._
4. Market Analysis
The cryptocurrency market can experience either a one-sided trend or a fluctuating trend. During weekends, fluctuating trends are most common. In this type of market, it is not suitable for long-term positions; if you have profits, take them and secure your gains. One-sided trends only occur for a limited period, and these markets are the easiest to trade - buy on dips and sell on highs, bringing you higher profits._
5. Trend Analysis
If you can accurately judge the trend, you've already won half the battle. You can analyze daily and weekly candlestick charts to determine whether the market is trending up or down over a period. If you chase after rising prices and sell on dips, it can lead to losses, ultimately resulting in a poor exit from the market._
6. Position Management and Leverage Techniques
In contracts, position management is very important. For example, if your account has $1000, a margin rate of 5%-10% is ideal, which translates to $50-$100. This way, you won’t easily face liquidation. The amount of leverage should be based on market conditions. Quick entry and exit with high leverage can yield fast returns and high capital utilization, with a profit rate of 20%-50% being ideal for taking profits. Market conditions change rapidly, so learn to restrain your greed and know when to stop. Greedy individuals often face unfavorable outcomes. In summary, use high leverage for short-term trading and low leverage for long-term trading.
