You may not understand contracts at all!!!
Why does everyone feel like they know everything about the cryptocurrency world, but when it comes to contracts, they collapse?
First, let me tell you about the four major taboos of contract trading:
1. Do not trade without stop-loss and take-profit
2. Do not hold onto losing positions
3. Do not over-leverage
4. Do not randomly operate at price points you don't understand
Second: Choosing entry points:
Example: short near eth1650~1660
So 1650 is the conservative position, and 1660 is the aggressive position. If you enter at 1650 and cannot make a profit immediately, then when it reaches 1660, you can add to your position. The average price would be 1655.
The same applies to Bitcoin; the entry price fluctuating $100 up or down represents aggressive and conservative positions. Don’t rush to enter; taking multiple entry points is beneficial for averaging the price.
Third: Position size management:
Enter 1% at aggressive points, and supplement by 1% at conservative points.
If a position provides a supplementary entry point, then add 2% at that point, making a total of 4% position size.
If there is no supplementary entry point, you can directly enter 2% at aggressive and conservative points respectively, totaling 4% position size. Each order should strictly control the position size within 5%.
Fourth: Profit-taking techniques:
Partial profit-taking method:
Take profits at 60%-80%-100%, closing half of the position, and set the stop-loss price at the opening price, using profits to strive for higher profits.
Trailing stop method:
Once profits exceed 100%, adjust the stop-loss level up a bit, and if profits exceed 200%, adjust the stop-loss level up again, thus following the trend to chase profits.
