How to trade contracts for profit?
Recently, many friends have said they are losing money, which goes against our original intention of entering the market. Below are some personal experiences that I hope can help you.
1. Only trade these two mainstream coins: BTC/ETH
2. Mainly use the important moving average resistance above the 4H level to judge entry points for short positions in batches.
For example, if the MA60 moving average at the 4H level continues to suppress the price, then use this moving average as the timing to enter short positions.
Stop loss: set it above the previous high after a spike upward, for instance, if the resistance level is 2440 and the spike reaches 2450, then set the stop loss above 2450.
3. Generally use the support below the same level or one level higher as the entry points for long positions in batches.
Stop loss: set it below the previous low after a spike downward, for example, if the support level is 2320 and the spike reaches 2310, then set the stop loss below 2310, near 2300.
4. Stop loss on principal: 20% of total capital; if reached, do not open new positions for the day. 4.2. Daily operations generally consist of two trades, with a single stop loss controlled at 10%. The size of the position for each trade should remain consistent.
5. Try to enter in batches, do not load all your bullets at once!
6. Try to follow the trend when opening positions; if the main trend is bearish, try to open short positions, and vice versa. When the overall market trend is good, chase hot coins (the top 3 in price increase or highly popular coins).
7. Control the risk-reward ratio, keeping it around 3:1.
8. Daily stop loss drawdown should be 10%-15% of the principal; if reached, do not open new positions for the day.
9. Daily review: Wait in cash for opportunities to enter in batches; if there are no opportunities, just wait in cash. In this kind of market, not losing money is equivalent to making money.
10. Guaranteed profit stop loss: When the day's trades have not hit a stop loss and the same level K-line patterns have not broken, you can avoid using guaranteed profit stop loss. However, if either condition is not met, then use guaranteed profit.
ETH: Use guaranteed profit after 20 points of floating profit; BTC: Use guaranteed profit after 350 points of floating profit. 2. Trailing stop loss: ETH: Use a trailing stop loss after 35 points of floating profit, using 3/5 minute levels for trailing. BTC: Use a trailing stop loss after 500 points of floating profit, using 3/5 minute levels for trailing.
11. Never think about risking everything for a quick fortune.
12. Do not open positions on weekends; even if opened, a maximum of one stop loss is allowed.
13. After hitting a stop loss, control your mindset; do not get overly emotional.
