How to operate a single order after a unilateral move in the currency circle
1. Understand the concept and reasons for a single order
In the field of digital currency investment, a single order refers to a large price fluctuation in the opposite direction after buying or selling a certain digital currency, resulting in an inability to close the position at the expected price, resulting in a loss. There are many reasons for a single order, the most important of which is the large market volatility and misjudgment of the market. In the unilateral market of the currency circle, the phenomenon of single orders is particularly serious.
2. Types and risks of single orders
1. Locked position hedging: After buying or selling a certain digital currency, the price fluctuates sharply in the opposite direction, resulting in an inability to close the position at the expected price, and the only option is to lock the position and wait for the price to rise. The risk of a locked position hedging is that if the price continues to fall, the loss will continue to expand.
2. Stop loss hedging: After buying or selling a certain digital currency, a stop loss point is set, but the market price quickly breaks through the stop loss point, resulting in a loss. The risk of a stop loss hedging is that the market price is highly volatile, and the stop loss point may not be able to effectively control the loss.
3. Buying a digital currency when the market is rising, but then the market reverses, resulting in losses. The risk of buying a digital currency when the market is rising is that the market price is volatile and easily affected by market sentiment, and blindly buying a digital currency when the market is falling.
3. Strategies after buying a digital currency
1. Stay calm: After buying a digital currency, you must first stay calm, do not panic because of losses, and objectively analyze the market and judge the price trend