Many people lose money in contract trading; how can you profit?
1. Only trade the top two.
2. Mainly use important resistance moving averages above the 4-hour level to judge the entry points for short positions.
For example, if the MA60 moving average above the 4-hour level is continuously suppressing the price, then use this moving average as the timing for entering a short position. Generally, use the support below the same level or a higher level as the entry point for gradually entering long positions. Stop loss: set below the previous low after a spike, for example, if the support is at 2220 and the spike is to 2210, then set the stop loss below 2210, near 2100.
3. Stop loss principal: if it reaches 20% of the total principal, no new positions will be opened for the day.
4. Daily operations usually consist of two transactions, with the stop loss for each transaction controlled at 10%. The position size for each trade should remain consistent.
5. Try to primarily enter positions gradually, do not load all at once!
6. Try to follow the trend for trading; when the main trend is bearish, try to open short positions, and vice versa. When the overall market trend is good, chase hot coins while controlling the profit and loss ratio, keeping it around four to one. The daily stop loss drawdown is 15% of the principal; if reached, no new positions will be opened for the day. Review daily.
Market crash: wait with no positions for opportunities to gradually take positions. If there are no opportunities, just wait out of the market. In this kind of market, not losing money is equivalent to making money.
4: Guaranteed profit stop loss: when the conditions for opening a position have not resulted in a stop loss and the K-line pattern of the same level has not been damaged, a guaranteed profit stop loss may not be necessary. Never think of going all in for sudden wealth; only trade in the market that belongs to you!
Learn to stay out of the market; do not force trades or hold overnight positions. If there is no market on weekends, try not to open positions. After being stopped out, control your mindset.
Contract trading: how to profit? Master these strategies and say goodbye to losses!
Volatile market: buy high and sell low, seek victory steadily.
Only trade BTC+/ETH+, stay away from altcoins+.
In a volatile market, BTC and ETH have better liquidity and relatively controllable volatility, while altcoins carry higher risks and should be avoided.
High short strategy.
Entry point: use the important resistance moving average (such as MA60) above the 4H level as the entry point for short positions.
Stop loss setting: place the stop loss just above the previous high after a spike, for example, if the resistance is at 2440 and the spike is to 2450, set the stop loss above 2450.
Low long strategy.
Entry point: use the support below the same level or a higher level as the entry point for gradually entering long positions.
Stop loss setting: place the stop loss just below the previous low after a spike, for example, if the support is at 2320 and the spike is to 2310, set the stop loss below 2310.
Drawdown control.
Daily stop loss should not exceed 20% of the total principal. After reaching this, no new positions will be opened for the day.
Daily operations should mainly consist of two transactions, with the stop loss for each transaction controlled at 10%.
Maintain consistent position size for each trade to avoid heavy trading.
Entry method.
Gradually enter positions, avoiding loading all at once.
Follow the trend for trading; when the main trend is bearish, try to open short positions, and vice versa.
2. Main upward market: chase hot spots, control risks.
Chase hot coins.
When the market trend is positive, choose the top 3 rising coins or those with high popularity for intraday trading.
Control the profit and loss ratio.
Control the profit and loss ratio around 3:1, ensuring profits exceed losses.
Stop loss and review.
The daily stop loss drawdown is 10%-15% of the principal. After reaching this, no new positions will be opened for the day. Review and summarize experiences daily.
Market crash: wait with no positions, look for opportunities.
Mainly stay out of the market.
In a market crash, not losing money is equivalent to making money. Patiently wait for opportunities to gradually take positions; if there are no opportunities, remain out of the market.
4. Take profit strategy: guaranteed profit and trailing stop +.
Guaranteed profit stop loss.
When the stop loss has not been triggered and the K-line pattern is intact, do not employ a guaranteed profit stop loss.
ETH: After a floating profit of 20 points, employ guaranteed profit; BTC: After a floating profit of 350 points, employ guaranteed profit.
Trailing stop.
ETH: After a floating profit of 35 points, implement a trailing stop using a 315-minute adjustment.
BTC: After a floating profit of 500 points, implement a trailing stop using a 3/5-minute adjustment.
5. Pay attention to the mindset and discipline.
Refuse to go all in; pursue compound interest.
Do not fantasize about getting rich overnight; stable compound interest is the goal. Greed is the root of liquidation.
Only trade in the market that belongs to you.
Learn to stay out of the market; do not force trades and avoid operating in unfamiliar market conditions.
Avoid overnight and weekend trades.
Try not to open positions at night and on weekends. Even if you do, strictly control your stop loss.
Control your mindset, operate rationally.
After being stopped out, remain calm and avoid emotional trading.
The core of contract trading lies in strategy and discipline. Through scientific operating methods and strict risk control, you can achieve steady profits in different market conditions. Remember, the market always has opportunities, but only those who are rational and patient can seize them.
If you are also a technical enthusiast and are deeply researching technical operations in the crypto market, feel free to follow me for the latest crypto intelligence and trading skills.
