Core Principles to Avoid Liquidation (Practical Simplified Version)
1. Only Trade Mainstream Coins
Focus on BTC/ETH, altcoins are highly volatile and easily manipulated, directly abandon them.
2. Open Positions in the Direction of the Trend, Enter in Batches at Resistance/Support
- Short Position: Build positions in batches along resistance levels when the 4-hour MA60 and other moving averages are continuously pressing down.
- Long Position: Enter in batches after stabilizing at the same level or daily support, avoid catching falling knives.
3. Stop Loss Rules
- After a spike, set the stop loss below the spike low (e.g., support at 2220, spike to 2210, set stop loss at 2100).
- Single stop loss ≤ 10% of capital, if total daily loss ≥ 20%, stop immediately**.
4. Position and Rhythm
- Fixed position size for each trade, refuse to go all in; if the trend is unclear, it’s better to stay out.
- Intraday trading ≤ 2 trades, profit-loss ratio at least 4:1 (make 4 to lose 1).
5. Handling Extreme Market Conditions
- During sharp declines, patiently wait for the spike to stabilize before entering in batches, otherwise stay out and observe.
6. Preserve Profits and Overnight Positions
- If profitable and the trend hasn’t broken, you can temporarily not move the stop loss; avoid overnight positions, do not trade on weekends**.
7. Mindset Control
- After a stop loss, take a mandatory break, refuse revenge trading; do not fantasize about getting rich quickly, only take profits within your understanding.
Summary: The root cause of liquidation lies in trading against the trend, heavy positions, and holding onto trades. Use rules instead of luck, survive to earn. $BTC $ETH #以太坊走势 #比特币突破11万美元 #币安LaunchpoolHUMA #币安Alpha上新 #BTC再创新高