8 Core Suggestions from Experienced Players to Newbies: Preserve Life First, Then Make Money

1. 3 Basics to Learn When Starting (Avoiding Pitfalls)

1. Core Concepts of Contract Trading

◦ Perpetual Contracts (no delivery date) vs. Delivery Contracts (with expiration date), newbies should practice with perpetuals first

◦ Leverage ≠ Doubling: A 5% reverse fluctuation under 10x leverage results in a 50% loss of principal, recommended to start with 5x

◦ Always Set Stop Loss: Set a 5%-10% stop loss for each trade (e.g.: if the principal is 8000 yuan, the single loss should be ≤800 yuan)

2. Choose the Right Platform

◦ Only choose the top 3: Binance, OKX, Huobi (90% of small platforms will run away)

◦ Fee Comparison: For spot trading, choose below 0.1%, for contracts pay attention to funding rates (the lower, the better)

3. Ironclad Rules of Risk Management

◦ Do not resist a losing position: If floating loss exceeds 10%, stop loss unconditionally, keep the principal, and do not fear missing opportunities

2. Trading Strategy: Make Money from “Certainty”

1. 2 Rules for Trend Trading

◦ Moving Average Judgment: In the 4-hour chart, if the 50-day line > 100-day line > 200-day line → go long; otherwise, go short

◦ Indicator Assistance: Enter when MACD is above the 0 axis with a golden cross + RSI > 50, higher win rate

2. Band Trading Mnemonic

◦ Do not catch falling knives: Wait for 3 bullish candles to stabilize before buying

◦ Do not chase rising prices: Do not chase if deviated from the moving average by more than 20%, wait for a pullback to the moving average

3. Capital Management: 8000 Yuan Partitioning Method (Practical Version)

1. Leverage Usage

◦ Newbies use 5-10 times: With 8000 yuan principal, can open contracts up to 80,000 yuan (10x leverage), reducing liquidation risk by 50%

◦ Handling Floating Profit: After making 20%, withdraw 20% profit first (e.g.: if making 1600 yuan, withdraw 320 yuan), then operate with remaining funds

2. Gradual Position Building

◦ Use 40% (3200 yuan) for the first trial position, stop loss at 5% drop (loss of 160 yuan)

◦ Increase by 30% (2400 yuan) after breaking previous highs, keep 30% (2400 yuan) to respond to sharp declines

4. Four-Step Practical Approach (Using BTC as an Example)

1. Choose Target: Only trade BTC/ETH (strong liquidity, downturn resistance > 3 times that of altcoins)

2. Trend Judgment: Bullish moving averages + MACD golden cross → go long; bearish arrangement → do not catch the falling knife

3. Position Building Operation: Use 5x leverage, buy 26000 yuan BTC with 3200 yuan, stop loss at 25700 yuan (loss of 300 yuan), take profit at 28000 yuan (gain of 400 yuan)

4. Daily Risk Control: Check positions before closing (not exceeding 10 times principal), adjust stop loss (move up with price to protect profits)

5. Risk Control: 3 Lines of Life and Death

1. Avoid 3 Types of Minefields

◦ Short-term skyrocketing coins (90% are manipulated by players), high leverage (liquidation rate over 60% at 10x or more), fully invested all-in (keep 30% in cash)

#Crypto Circle