In contract trading, most people tend to incur losses. To achieve profitability, one must build a scientific strategy:
Focus on mainstream cryptocurrencies with a high market capitalization and good liquidity, as their trends are stable and clear, which can reduce risk.
For short positions, enter gradually when important resistance moving averages at the 4-hour level, such as MA60, continue to exert pressure. For long positions, use lower support levels at the same or higher time frames as a reference, and gradually position when stabilization signals appear.
Stop-loss settings must be precise. For example, if the support level is 2220, after a spike to 2210, set the stop-loss just below 2210 at a reasonable position. If daily stop-loss reaches 20% of total capital, then stop trading. Daily operations should focus on two trades, with a single stop-loss of 10%, maintaining consistent positions and entering gradually, rather than going all-in at once.
Follow the main trend of the market when opening positions: short more during bearish trends and long more during bullish trends; chase trending coins when the market is favorable, controlling the profit-loss ratio around 4:1.
In a crashing market, stay in cash and wait, gradually buy on dips. If there are no opportunities, take a break; not losing money is winning.
Do not gamble, do not force trades, only engage in markets that suit you, avoid overnight positions, and minimize trading on weak weekend markets. After a stop-loss, adjust your mindset, review daily summaries, and refine your strategy.
Adhere to rules, analyze rationally, and control your mindset to steadily advance in contract trading.
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