1. Analyze the Market

In the cryptocurrency market, there are unilateral and volatile markets. Generally, unilateral markets only appear for a period of time, where there is a unilateral rise or fall in cryptocurrency prices. This kind of market is the easiest to trade; investors only need to buy low or sell high. In a directionless market, it is not suitable to invest in medium to long-term positions; one can only trade short-term, buying high and selling low, and exit as soon as there is a profit.

2. Analyze the Trend

The second step is to observe the trend, which can be referenced through daily, weekly, or monthly candlestick charts, and analyze the long-term factors affecting mainstream cryptocurrencies, thereby determining whether mainstream cryptocurrencies will rise or fall over a period of time. If you enter the market without first looking at the trend and blindly chase highs and lows, you can only leave the market in a miserable state. After determining the trend, you can set rough operational goals; it can be said that if you determine the trend correctly, you are already halfway there.

3. Identify Good Entry Points

After confirming a favorable trend, you still cannot rashly enter the market. You should choose good entry points; otherwise, it is easy to be forced out by market fluctuations. For example, recently in the cryptocurrency market, it has been in a rising trend, but many people who went long still lost money. Why? It is all because they did not choose the right entry points.

4. Choose the Right Timing

The cryptocurrency market has its own rules. Generally, from January to May each year is a rising season, and one can buy low. From May to September, the market is volatile and trending downwards, with some price increases in between; the key is to sell high and buy low. In the second half of the year, there are often significant drops or surges, which is also the most profitable period.

5. Control Your Positions

Only by reasonably controlling your positions can you have a stable opportunity for profit; otherwise, your account will only result in failure. Generally, put 10% of your funds into the market. If your account funds are only $10,000, then each trade should be $1,000, regardless of whether it is long or short. In favorable market conditions, if the entry trades are profitable, the stop-loss level should be based on the opening price. No matter how confident you are in the market trend, do not take heavy positions. If the entry trade is at a loss, do not average down against the market unless you have hundreds of billions of funds to support it. Likewise, for a $5,000 account, it is best to trade positions of $500.

A Guide to Position Management and Leverage Techniques for BTC Perpetual Contracts

[Position Management]

Position management for contracts is very important. For example, if your account has $10,000, the best margin for your trades would be 5-10%, which is $500-1,000, or 50-100 contracts. These 50-100 contracts can be entered in 2 or 3 batches at different points.

[Supplementary Order Techniques]

If the leverage is the same for supplementary orders, the next step is to supplement positions with a ratio of 1:2:3. For example, the first order is 10 contracts, the second is 20 contracts, and the third is 30 contracts. If the initial leverage is 20 times, then the second order should be 50 times, and the third order should be 100 times, with a maximum of three orders. The total of these three orders should be one-tenth of your total position. Flexibly adjust both leverage and position sizes to quickly recover or take profits!

[Leverage Techniques]

1. The size of leverage should be determined by the size of the market; for large markets, use long positions with low leverage to withstand risks.

2. Quick in and out, high leverage, quick returns; it is generally recommended to take profits around 30-50%, because market changes are too rapid. We must learn to respect the market and know when to stop.

[Warm Reminder] Correct your attitude and study seriously. Build positions scientifically and operate rigorously. Control your positions, adjust margin immediately when opening a trade, and set stop-loss and take-profit orders. Don't gamble or be greedy; enter quickly and exit promptly, operate flexibly, and take profits in time. No anti-positioning or all-in betting is allowed. Investment carries risks; proceed with caution, and bear the risks yourself.#美国加征关税 #大而美法案 $BTC