Why do many people lose money trading contracts, and how should contracts be traded to make a profit? (The following is one of my long-term trading experiences summarized for volatile markets)
Note: The following techniques are only for Bitcoin (do not trade contracts with small coins)
1. How to open a short position:
1. Opening point: Mainly judged by the important moving average group above the 4H level to determine the entry point for short orders in batches. For example, if the MA60 moving average above the 4H level continuously suppresses the price, then use this moving average as the timing to enter short orders.
2. Stop loss: Place it above the previous high after a spike upwards and then a drop. For example, if the resistance level is 2440 and the spike reaches 2450, then place the stop loss above 2450.
2. How to open a long position:
1. Opening point: Generally based on the support below the same level or one level higher as the entry point for long orders in batches.
2. Stop loss: Place it below the previous low after a spike downwards and then a rise. For example, if the support level is 2320 and the spike reaches 2310, then place the stop loss below 2310, around 2300.
3. Drawdown control:
1. Stop loss on capital: 20% of total capital; if reached, do not open any more orders that day. 2. Daily operations generally focus on two trades, keeping the single trade stop loss at 10%.
3. The size of each opening position should remain consistent.
4. Entry methods:
1. Try to enter in batches, do not load all bullets at once! 2. Try to follow the trend when opening orders; when the main trend is down, try to open short orders, and vice versa.
Precautions:
1. Never think about going all-in for a quick fortune; stable compounding is the goal; having the mentality of killing the market equals liquidation.
2. Only trade in markets that belong to you! Learn to stay in cash, do not force trades.
3. Try not to make night trades; if you do, try to hedge.
4. Try not to open trades on weekends; if you do, allow at most one stop loss.
5. After being stopped out, control your mentality; do not get emotional #合约养家
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