Recently, many fans have mentioned that they are just starting and do not know how to operate. With initial funds of just under 1000U, they ask me for good strategies. Today, I will share my suggestions.
For example, if you have 1000U, divide it into 10 parts, investing 100U each time, with a suggested leverage of 20X. New traders may find it hard to control their mindset with too high a multiplier. Keep the remaining 900U in an investment account. If you lose 100U, do not think about averaging down. If you lose everything, your first task is to reflect and summarize, then take a break for 1-2 days. Do not fear missing out on market trends; Bitcoin's volatility is always present.
Every month there are significant fluctuations; whether there are many opportunities depends on whether you have the luck to play. Once adjusted, you can divide the remaining 900U by 10 to get 90U per share, then reinvest. This time be careful to try to earn that money back; suppose you make 300U this time, keep 100U, and transfer out the remaining 200U. This way, you will feel more secure, and your mindset will improve significantly. Never invest everything; if a black swan event occurs, you could lose it all at once and have to start over.
Objectively speaking, if you do contract trading, just open 10X. If you are wrong about the direction and it drops 10%, you will get liquidated. Even for BTC, a 20% fluctuation in a year is very normal; if you are fully invested each time, what you earned before is meaningless, and in the end, it all goes to zero. Walking by the river often, no one can guarantee they are right every time.
A great trader with a 60% success rate is already impressive. Therefore, position management is very important. Even with a 90% win rate, one wrong trade can lead you to ruin.
Learn trading knowledge, implement light position operations, and reduce losses. Most people incur losses in trading because they lack understanding of the market and do not know how to control positions and manage risks. Therefore, avoid increasing positions when feeling unwell; instead, reduce or close positions.
If you lose more than 2% of your total capital in a single day, you should be alert. When losses reach 6%, clear all losing contracts, and set a breakeven price for profitable contracts, then take a break for at least 2-3 days. Chasing after prices is dangerous; do not blindly chase unless market conditions are clear. Be cautious when increasing positions after making a profit, especially after significant gains, as new positions often lead to failure. If you want to increase your position, act immediately or wait until a significant correction ends, following the pyramid strategy.
When the margin profit exceeds 200%, set a 40% trailing stop for half of the position, and set a breakeven price for the other half to take profit. This is to protect profits and ensure that significant gains do not turn into losses. Never trade when feeling down, depressed, or troubled in life. If there has been an overall loss in the last 24 hours, you should take a break for 2-3 days.
Never trade against the trend, reduce trading frequency, and look for suitable opportunities to enter the market. For correct trades, correct decisions may continuously bring profits.
Advice for newcomers:
Small funds, starting positions of 30-50U.
High leverage, 20x leverage.
Stop Loss: Set a stop loss when entering the market, with a stop loss of 20-30 dollars.
Take Profit: Hedge to take profit (profit retracement of 30%, take profit strategy).
Withdraw profits; deposit starts from 500-1000 USD each time.
