Trading discipline is the most important, without a doubt, it is the constitution of trading and the foundation of the building. Only by strictly abiding by operating discipline and executing trading plans can you survive in the contract market.
(1) Do not increase your position when you are losing money. When you feel uncomfortable, you can only reduce or cut your position.
(2) If the loss of all funds (not including floating profits) reaches 2% during a certain period of the day, you should start to pay attention. When the loss reaches 6%, you should liquidate all losing contracts (or lock positions) and reduce positions of profitable contracts (set stop-profit at break-even price), and rest for at least 2-3 days.
(3) Chasing highs is very dangerous. Don’t chase unless necessary! If you must chase, please follow the 1-minute adjustment and wait until the MACD crosses again before chasing longs. (The same goes for chasing shorts)
(4) After making a floating profit, you should be cautious when adding positions. Often, when the floating profit is huge, adding new positions will lead to transaction failure. Therefore, you should either add positions immediately after making a floating profit or add positions after a major correction. You should also add positions according to the pyramid method. (For contracts with large leverage, the stop loss for the newly added positions should be set at the low point of the previous 4 hours.)
(5) When the floating profit of the margin exceeds 200%, half of it is set as a 40% profit retracement stop profit, and the other half is set as a stop profit at the breakeven price. The original intention of this rule is "If you make a large profit, you must protect the profit. You must not make less than 1/2 of the maximum profit, and you must not turn the profit into a loss!!!"
(6) Six ways to stop profit (to be explained in a later special topic)
(7) Never trade when you are in a bad mood, depressed or bored, or are troubled by recent family or work matters!
(8) If the overall situation is a loss in the past 24 hours, do not trade and take a break for 2-3 days.
(9) Position management: We implement a 5:4:1 strategy, which means that your total funds are divided into 10 parts, 5 parts are placed in mainstream currencies (Bitcoin, Ethereum, BNB and other platform currencies), 4 parts are placed in altcoins, and 1 part is placed in contracts. The money earned from the contracts should be placed in spot.
(10) Believe that low-probability events and black swan events can fight against human nature.
(11) Never go against the trend.
(12) Reduce the frequency of transactions and find the right time to enter the market.
(13) For correct trades, try to hold the bottom position. Correct trades may continue to be correct.
