Many people lose money trading contracts. How can one trade contracts profitably? Many people lose money trading contracts. How can one trade contracts profitably? Here are some personal insights, hoping to help fellow crypto friends!
1. Only trade major coins like $BTC and old $ETH.
2. Mainly judge short positions based on the important moving averages above the 4-hour level.
For example, if the MA60 moving average above the 4-hour level is continuously suppressing the price, then use this moving average as the entry point for short positions.
Generally, use the support below the same level or one level higher as the entry point for long positions.
Stop loss: Set it below the previous low after a downward spike, for instance, if the support level is 2220, and the spike goes down to 2210, then set the stop loss below 2210, around 2100.
4. Stop loss on capital: If the total capital reaches 20% loss, then no more trades will be opened that day. 4.2. Daily operations are generally focused on two trades, with a single stop loss controlled at 10%.
The position size for each trade should remain consistent.
5. Try to enter positions in batches, do not fully load all at once! 5.2. Try to follow the trend for entering trades; if the main trend is bearish, try to open short positions, and vice versa.
When the market trend is good, chase hot coins.
Control the profit-loss ratio, aiming for around 4:1.
Daily stop loss drawdown should be 15% to 20% of the capital; if reached, then no more trades will be opened that day.
Daily review. 3. Dumping market: Wait in cash to enter in batches, if there are no opportunities, just wait in cash. In this kind of market, not losing money is equivalent to making money.
4.1. Profit protection stop loss: When the day's trades have not hit the stop loss, and the K-line pattern of the same level has not been broken, you can forgo the profit protection stop loss.
Never think about betting everything for a sudden wealth,
Only trade in your own market! Learn to stay in cash, do not force trades.
Do not hold overnight positions.
Try not to open trades during weekends when there is no market activity; after hitting a stop loss, control your mentality and do not panic!
