For example, if you have 1000U, divide it into 10 parts, and invest 100U each time, with a suggested leverage of 20X. Newcomers may find it difficult to control their mindset with too high a multiple. The remaining 900U should be kept in a wealth management account. If you lose 100U, you must not think about adding more positions. If you lose everything, the first thing you need to do is reflect and summarize, and then take a break for 1-2 days. Don’t be afraid of missing market opportunities; Bitcoin’s volatility can happen at any time. There are significant fluctuations every month, and it depends on whether you have the luck to play. Once you have adjusted, divide the remaining 900U by 10 to get 90U for each part, and then invest it again, but be more cautious this time to try to earn this money back. Assume you earn 300U this time; you leave 100U and transfer all the remaining 200U out, so you will feel more at ease, and your mindset will be much better. Never invest everything; if a black swan event occurs in the market, you will lose everything at once and have to start over. Objectively speaking, when trading contracts, it’s better to open at 10X. If you are wrong in direction, a 10% drop will liquidate your position, and considering that Bitcoin typically has a 20% fluctuation in a year, it’s normal. If you are fully invested each time, it makes no sense no matter how much you earned previously; in the end, it all returns to zero. Being frequently at the riverbank, no one guarantees you will be right every time. A great trader with a 60% success rate is already impressive. Therefore, position management is very important. Even if you have a 90% win rate, one wrong move can lead to total destruction.
Learn trading knowledge and practice light-position operations to reduce losses. Most people lose money in trading because they do not understand the market well enough and do not know how to control positions and manage risks. Therefore, avoid adding positions when feeling unwell; instead, reduce or clear positions. If you lose more than 2% of your total capital in one day, you should be alert. If losses reach 6%, clear all losing contracts and set a breakeven stop-loss on profitable contracts, then take at least 2-3 days off. Chasing gains is dangerous; unless market conditions are clear, do not blindly chase gains. Be cautious when adding positions after a profit, especially after a significant gain, as new positions often lead to failure. If you want to add positions, act immediately or wait until a significant correction is over, and follow the pyramid adding method. When margin profits exceed 200%, set half to exit at a 40% retracement and the other half at a breakeven stop-loss. This is to protect profits and ensure large profits do not turn into losses. Never trade when you are in a bad mood, feeling depressed, or have troubles in life. If you have an overall loss in the past 24 hours, you should also take a 2-3 day break. Never go against the trend, reduce trading frequency, and look for the right timing to enter the market. For correct trades, because the right decisions can continuously yield profits.
Suggestions for newcomers:
Small capital, starting with 30-50U
High leverage, 20 times leverage
Stop-loss: Set a stop-loss upon entry, with a stop-loss of 20-30 dollars loss
Take profit: Hedge take profit (profit retracement of 30%, take profit strategy)
