When trading cryptocurrencies, many investors encounter a problem when increasing positions: if I increase my position and the market continues to decline, won't I suffer even greater losses? But if I don't increase my position and the market goes up, won't I lose out again? This choice puts many investors in a dilemma when increasing their positions. What are the techniques for increasing positions in cryptocurrency trading? How to increase positions in cryptocurrency trading?
In fact, there are certain methods and skills for increasing positions in cryptocurrency trading. Today, I will briefly summarize some of these skills for investment friends:
1. Increase positions step by step
2. After confirming the trend, do not hesitate, boldly increase positions
3. After a few days of continuous decline, increase positions when a small rebound occurs
4. Increase slightly on small declines, increase significantly on large declines
When trading cryptocurrencies, chasing orders is something that must be learned. Chasing orders require certain methods and skills. Chasing orders generally occurs when the cryptocurrency price shows violent fluctuations, which is also when there are huge risks, so chasing orders naturally also carries significant risks.
How can we minimize this risk to the lowest level? Below we will briefly introduce the principles of chasing orders.
I. Choosing the timing for chasing orders
We have mentioned that chasing orders mainly occurs when there are violent fluctuations in market cryptocurrency prices. Therefore, the timing for chasing orders is when the cryptocurrency price starts to fluctuate strongly up and down. How to judge when the price starts to fluctuate violently? The main situation is during a breakout. A breakout mainly refers to breaking through all combinations of K-lines, specifically including support levels, channels, resistance levels, etc.
II. When to choose to close positions after chasing orders
Based on long-term market observations, we found that usually, after a breakout in cryptocurrency prices, the price will move several points in the direction of the breakout depending on the cryptocurrency. If we choose to chase orders, it means we will close the position when we have made a few points in profit.
III. Specific operational techniques
Under normal circumstances, when there is a violent fluctuation in cryptocurrency prices and we make an order, if our order changes when it is executed, then your order is at the price when you initially made the order.
Another point is that when we are chasing orders in cryptocurrency trading, the price fluctuations can be quite fast. Therefore, after our order is executed, we should immediately set a take-profit price. By doing this, when the price reaches the take-profit level, the transaction can be completed automatically. The main purpose of this is to prevent investors from missing the best trading time due to their own greed.
When trading cryptocurrencies, to accurately grasp the skills of increasing positions, in summary, there is just one key point: you need to have an accurate judgment of the market's future developments, and if a judgment error occurs, there should not be too much unnecessary loss.
I am Ayue, focusing on analysis and teaching, a mentor and friend on your investment journey! I wish everyone investing in the market smooth sailing. As an analyst, the most basic thing is to help everyone make money. I will help you solve confusion, trapped positions, and provide operational advice, speaking with strength. When you lose your direction and don't know what to do, look at Ayue (homepage) for guidance.
