Man follows the earth, the earth follows the sky, heaven follows the Tao, and Tao follows nature. Everything in the universe must follow laws. Because of the laws, everything in the universe becomes beautiful. The law of trading is that stop loss can always be controlled by yourself. You need to build your own trading system, and then implement this strategy all the time, then this is a law that belongs to you. In the cryptocurrency trading market, using Bitcoin as the benchmark, the contract trading volume is 6 to 7 times that of spot. Why is contract trading so popular? First of all, the contract has its own leverage attribute. For ordinary retail investors, Bitcoin is expensive and requires hundreds of thousands to purchase one. When the amount of funds is not large, ordinary retail investors will choose to buy altcoins with relatively large fluctuations. However, you can purchase one in the contract trading market with a leverage of 500 US dollars, and the profit obtained is the same as holding one on spot. Secondly, there is no limit to the amount of funds for contract trading, ranging from 1 US dollar to 10 million US dollars. Currently, the contract leverage on the CEX exchange is as high as 120 times. There are many people who earn tens of millions of dollars for a few hundred US dollars. It’s a myth, but the contract market is also a zero-sum game, a game between players. The money you make must be someone else’s loss. Let’s share some experience in the contract trading market. How to play to make more profits and reduce losses. Before sharing, first remember the eight-character motto: mentality first, trading second. Because only with a good mentality, one's own trading will not produce subjective thoughts and illusions. This is why you will continue to make profits when you are making profits. Once you start losing money, your mentality will be unstable, which will lead to overexertion and liquidation. Build your own trading system. What a trader cares about is not how many indicators he can learn to use, nor how high your winning rate is. It is very important to develop your own trading system that can provide stable returns. Let me give you a simple example, basically all contract transactions. The winning rates of players are around 50% (calculated from half a year to a year), so why do you lose money, while only a very small number of players make money? Can’t hold on to the profitable orders? Are you going to take the losing orders? Those who make profits get losses or even liquidate their positions? Let’s share my own trading system (not strategy) ① Learn to stop loss: This is something that every contract trader must do. If you can’t, please leave as soon as possible. The stop loss I use here does not display the key position based on the K line. To stop the loss, for example: the stop loss will not be based on the drop or breakthrough, but the stop loss will be based on the percentage of funds, and the account funds will be withdrawn by 5%-10% to stop the loss.In the picture: white line EMA7, yellow line EMA21, purple line EMA60 Example: The daily line is above EMA60, bullish trend, the daily line falls back on EMA60, BTC37700 long order enters the market, buy 2BTC, when the BTC price reaches 52900, the profit is 30400 US dollars. If your stop loss method is to stop the loss when the daily closing price falls below EMA7, then when you close the position, you will make a profit of 18,246 US dollars, and the minimum drops to 10,000 US dollars. If you use indicators to stop the loss, you cannot predict the extreme market conditions. losses or even liquidation. If you use a trailing stop loss to retrace 5% to 10% of the profit to stop the loss, then the profit at the stop loss price (51380-52100) is 29380-27400. The advantage of this is to prevent profit retracement and extreme market conditions. Lead to liquidation. ② Determine the trend: First determine the general direction, whether the future trend is upward or downward. If it is upward, you will only choose the key point to enter the market to go long. If it is downward, you will only choose the key point to enter the market to go short. Then How to judge the general direction? I use the daily EMA60 to determine the general direction of the future. The daily K is on an upward trend above EMA60, and the daily K is on a downward trend below EMA60. In the picture: White line EMA7 Yellow line EMA21 Purple line EMA60 ③ Currency selection: When the market is upward, give priority to the currency whose daily K is above EMA60 and has relatively large transactions. Generally, it is the top 15 currencies in terms of trading volume. When the market is downward, you can choose all currencies whose daily K is under EMA60. Therefore, there is a difference between rising and falling currencies, because in a bull market, rising prices generally rotate, while in a bear market, The declines always occur simultaneously. ④Time to enter: If we judge that the market is going up, we will choose to pull back during the rise to enter the market and do long, such as stepping back on a certain trend line to enter the market, or stepping back on the 4H EMA60 or daily EMA7, etc. If it is judged that the market is downward, then you will choose to enter the market at a key rebound position to go short, such as stepping back on a certain trend line to enter the market, or stepping back on the 4H EMA60 or daily EMA7, etc. ⑤ Take profit: In the case of profit from long selling, 50% of the position will be closed at the pressure position. If there is a correction, it will enter the long position again. In the case of profit from short selling, it will be closed at the key support position. If you lose 50% of the position, when the profit of closing the position occurs, it will become a floating stop loss, which means that the floating profit of 100W will be directly closed when the profit becomes 90W.⑥Withdrawal and its leverage ratio: Every trader must develop a good habit of withdrawing money when making money. Contract accounts trade with fixed funds or withdraw money in proportion. For example, if you earn 100,000 US dollars with 50,000 US dollars, you can withdraw 30,000 US dollars, 70% of the profit or general withdrawal. In the leverage ratio, the long-term leverage ratio cannot exceed 3 times, and the short-term leverage ratio cannot exceed 10 times. ⑦ Fix your own trading system. Remember not to change your trading system at will because of the confusion of the K-line. Even if you can make a profit by entering the market, it is still part of gambling. You must have regular work and rest. Don't stay up late because of losses, and your mental state will be bad. It will affect your operation. Don't make money beyond your own knowledge. Summary: In the contract market, the first thing we should consider is risk awareness. According to our own personality and capital size, the most important thing is to find a trading system that suits us. We have a rough prediction of the market trend. Once we choose to enter the market, we should first Consider stop loss. When making profits, you must consider when to stop profits and withdraw cash. Then, no technical indicator is stable and profitable, so you must learn to wait when there is no market, and you must understand that the logic of making money is a trend. After all, it’s hard for a clever woman to make a meal without rice. #BTC #币安合约锦标赛 $BTC