In an uptrend, go long on strong coins; conversely, in a downtrend, go short on the weakest coins. For example, at the beginning of a bull market, the strongest rising assets are Bitcoin and Ethereum. When pulling back, these two currencies are the first choices for long positions. During a decline, shorting Bitcoin is the preferred option. Even if the final result shows that mainstream coins decline more than Bitcoin, only shorting or chasing Bitcoin can greatly avoid the risk of a violent rebound. Most participants in the crypto market are short-term traders, and it is difficult to hold until the ideal exit points while also not being very skilled in position control. They cannot rely on volatility to average out their positions. Given this situation, for most traders, a good entry price outweighs everything else. Once there is a profit, take some off the table for safety, and set a stop loss at the cost price for the remaining part.
Some people may say that short-term operation is speculation! First of all, Xiaofei wants to say that short-term operation is not speculation. The real short-term operation is an investment behavior that has mastered certain market operation rules and requires strong skills. Short-term operation actually tests a person's skills and patience. People who are proficient in short-term operation must have seen a lot of K-line charts, studied their trends, and summarized the general rules. In addition to reflecting short-, medium- and long-term fluctuations, the most macro point of the candlestick chart is that it can tell you which projects have done a good job in market value management, and which projects have been unable to recover after being smashed and are purely for profiteering. For example, we have mentioned many times before that there are many forked coins of BTC. In fact, except for BCH, the candlestick charts of other forked coins are not worth reading.
Shortcut to Entering Short-term Trading in Cryptocurrency
If you can calm down and do this, you will likely comprehend some of the underlying truths within two months. The volatility in the cryptocurrency market is so great that just surviving can allow you to make money. The specific method is to recharge 200 yuan each time, which is about a little over 27 US dollars. Then, aim for 1000 US dollars and operate boldly. No matter what method you use, try to achieve this goal within a continuous period of time. I have verified that if you immerse yourself in the experience, after about a dozen liquidations over two months, you can complete the last recharge and survive here. The specific methods for opening and closing positions are not important, at least not the most important. The most important goal during this time is to feel the rhythm of the cryptocurrency market and to find the diverse trading strategies of market makers.
1 Profit Dichotomy For every contract with a profit exceeding 100U, divide half of it and transfer it to your spot account. For example, in one order, 2500U-3700U. If you make a profit of 1200U, you can directly transfer 600U to your spot account, and use the remaining 3100U to continue the next order. This is the most important point. The principle is very simple, but it is very difficult to execute because it is against human nature. Human nature is greedy. The advantage of doing this is 1. It will greatly help you get rid of the frustration caused by a margin call due to various reasons. If you have ever had a margin call, you will probably understand what I mean. Mentality is particularly important in the cryptocurrency world.
Five principles for short-term contract operations
Principle 1: Risk avoidance first, making money second This is reflected in: eliminating and filtering out the falling currencies, the currencies that are fluctuating and adjusting, the currencies that are rising very slowly, the currencies that are rising very little, the currencies that have no upward momentum and trading volume, the currencies that have been heavily speculated in history, and the currencies with problems. Only participate in those currencies that can rise and are in the stage of rapid rise. (Choosing familiar currencies can effectively reduce risks and increase the chances of winning.) And see the big picture, identify the trend, and only do things related to the rise. Focusing on the things related to the rise can greatly save manpower, material resources, and financial resources, and can prevent you from doing useless work. At this time, it is natural to keep up with the rhythm of the rise and take advantage of the trend to pursue it, and short-term operations have entered a new realm.
There are no shortcuts in contract trading; success is definitely not easy. Every trader wants to find the path to success quickly, but in reality, the vast majority will fail along the way. The path to success is long, always learning a bit, practicing a bit, understanding a bit, and improving a bit. Failure and pain are your best teachers. Price rises and falls form trends, and the inertia of trends drives prices up and down, while price fluctuations change trends. Trends are such a cycle; the hardest part is still the self-control of human nature and emotions. The establishment of a trend system framework: You have a trading framework; you know when to stop-loss and when not to stop-loss. Most people lose money because they stop-loss randomly, stopping loss on trades that shouldn't be stopped; or because they do not stop-loss, when faced with trades that need to stop-loss, they hold on stubbornly and double down, leading to significant losses.
Contract trading usually involves leverage, which is the most attractive aspect. High returns can easily cause a loss of rationality. Therefore, when engaging in contract trading, you must adhere to safety and controllability as the minimum standard to play contracts long-term and seek survival and development within contract trading. 1. For some investors, the main need is to avoid the depreciation risk of falling coin prices, using a low margin to preserve value. You can open an order with moderate leverage when a downward trend forms, setting the stop-loss at the trend reversal point. 2. For speculative traders, stop-loss must be synchronized with the opening of the order, matching the use of leverage with the maximum tolerable loss for each order.
1. Check the trend in the morning In the morning, first look at the 4-hour, 6-hour, 12-hour and 1-day K-line trends to find out the support and resistance levels. Then combine MACD, KDJ, BOLL, trading volume, naked K-line trend, moving average and other aspects to judge the trend of the whole day. Based on this information, formulate the offensive and defensive strategies for the day and start trading. 2. Watch for volatility at noon After the market fluctuations in the morning, I started to pay attention to the K-line patterns at noon, found the range of oscillation, carried out high-selling and low-buying operations, and seized the opportunity of back and forth fluctuations. 3. Watch the pull-up in the afternoon The afternoon is the time when market makers and institutions are active, usually between 4 and 6 o'clock, the market will rise or fall rapidly. The market fluctuates very quickly, so when operating, you should either stop profit quickly or wait for the confirmation of true or false signals before entering the market.
Contract Trading Skills, Essential for Beginners in Futures Trading
Look at bullish and bearish: Whether you are going long or short, keep an eye on the day's highest and lowest points. If the daily high and low exceed yesterday's highest or lowest points, it indicates a change in the market, making it a straightforward way to determine bullish or bearish conditions. Look at strength: Continuous rises or drops lead to significant changes in trends; however, before breaking key levels, rockets or waterfalls often have limited strength, making it a suitable time for high-altitude low purchases. Look at amplitude: If the amplitude is within yesterday's high and low points, the market is stable. However, when it narrows to the point of not being able to watch the market closely, it often signals an impending change; be particularly attentive. If the day's high and low points exceed yesterday's high and low points, the amplitude increases, so watch for breakthroughs at significant support and resistance levels. If there are no breakthroughs, it remains in a range-bound fluctuation, but there is still room for trading.
Today I will share some insights on contracts; be sure to execute them seriously and familiarize yourself with them, and wealth freedom will surely come. I have experienced the ups and downs in the trading market. From the first time I came into contact with BTC until now, nearly 10 years have passed, and I have learned a lot of things and experiences. Today, I will share with you, which is especially useful for newcomers. First point. The risks of 2x contracts and 200x contracts are the same; lower leverage is more likely to lead to missed exit opportunities due to inner conflict, resulting in liquidation. Second point. Do not open positions at resistance and pressure points; open on momentum breaks. If resistance arrives, exit immediately; do not cling to the battle, and prioritize locking in profits.
Cryptocurrency Contract Trading: Small Bets for Big Gains, A Beginner's Guide
Total Position Setting: The funds I use for contract trading are always fixed, for example, the funds of one account are always 300U. This means my maximum loss is 300U, and once the market trend is favorable, I have the opportunity to gain tens of thousands of U in substantial profits. This setup allows me to keep risks manageable while seizing the profit opportunities presented by larger market movements. Initial Investment: My initial trading amount is always very low, based on the philosophy of stock master Livermore. He believes that if you start off right, it's best to start making money. Therefore, the amount I initially test the waters with is always small; even if my total position is 300U, I often start with only single or double-digit U. This ensures I am in a profitable state from the beginning of the trade.
How should a novice choose the period to analyze the market when playing contracts?
1. For newcomers to the contract, the entry and exit points of each transaction are difficult. It is not advisable to trade greedily. Appropriate practice can exercise judgment and decision-making abilities. Gradually become familiar with the habits of the currency price, and then pursue big profits. As the saying goes, plan before you act, which is just right for trading. 2. Before a novice trades in a contract, he can first look at the 4-hour chart to determine the trend and direction; then look at the 1-hour chart, pay attention to the trend of the transition period, and judge the trend of the next period. The transition period is more important and connects the past and the future. 3. The 15-minute chart is suitable for short-term trading. Generally speaking, it is more suitable for beginners to practice and is practical. Look at the 15-minute K-line trend and then place an order based on the 5-minute point.
How Should Beginners Control Risks in Futures Trading?
1. Market Analysis: In the cryptocurrency market, there are directional trends and oscillating trends. Generally, directional trends only occur for a period of time with unilateral price increases or decreases. This kind of trend is relatively easier to trade; traders just need to look for buying opportunities at lows or selling opportunities at highs. In directional trends, a trailing stop-loss method can be used to capture greater profits. However, in non-directional oscillating markets, it is not suitable to trade medium to long-term; only short-term trading is advisable, buying low and selling high, and taking profits quickly. If you are greedy, profits may be lost at any time. 2. Price Level Analysis Even after identifying a favorable trend, one should not rush into the market. It is also important to choose the right entry points; otherwise, it is easy to get stuck in a losing position. Getting stuck can affect your mindset, and what was initially a well-analyzed trend may lead to behavioral non-compliance. Therefore, the entry point is crucial. You can look for support or resistance levels based on the analysis of larger time frames and use them as entry points.
What Should Beginners Pay Attention to in Contract Trading?
Newbies in contract trading need to pay attention to the following aspects to reduce risks and increase the chances of success: 1: Set Stop Loss and Take Profit In contract trading, market price fluctuations are very rapid, especially in the cryptocurrency market. To avoid incurring huge losses during short-term fluctuations, setting stop loss and take profit is crucial. Stop Loss: Automatically close the position when losses reach a certain amount to prevent further losses. Take Profit: Automatically close the position when profits reach the target to secure profits and prevent a market reversal from turning profits into losses. Recommendation: Set stop loss and take profit before each trade and strictly execute the trading plan. (Generally, the take profit is about two to three times the stop loss.)
The current Ethereum situation is around 3395, and it has stabilized around 3300 in the past two days. If Ethereum rises to 3400, it is very likely to break the previous high of 3450. Shorting is not recommended, as it is still in a recovery phase #ETH市场新动向 $ETH
Macro market analysis: The US dollar index surged, and the cryptocurrency circle pulled back📉 The highest of the US dollar index has broken through 107. This kind of strong surge in the US dollar index means that the US dollar has appreciated against all currencies in the world. In other words, all other currencies in the world have been slaughtered by the US dollar. Bitcoin began to pull back after it surged to 93,300. After several long and short shocks, the current price has reached 87,400. The cryptocurrency circle is now polarized. The pullback of Bitcoin and the crazy meme is healthy, but the pullbacks encountered by other cottages may not be so healthy. The ETH/BTC exchange rate has hit a new low again, which also means that the previous outbreak of Ethereum has not deviated from the inertia brought by the surge in Bitcoin. With the pullback of Bitcoin, the pullback of Ethereum will only be stronger. The panic greed index of the Bitcoin market has reached 80. From this perspective, the market is still looking forward to Bitcoin's surge. As ordinary investors, we should believe that the pullback will continue for some time. Again, at this time, we must grasp the chips in our hands and cherish the chips in our hands. It is not yet time to make a profit. December is still a good month for highs. For retail investors, if you still have spare positions, you can plan and gradually increase your positions when the correction is deeper. #市场回调,观望还是上车? #美国零售销售数据即将公布