The most adventurous method should also be divided into three times. In other words, you should at least give yourself three chances.
For example, if the total account fund is 200,000, the maximum loss permitted by the client is 20%, which is 40,000. Therefore, my suggested risk-taking loss plan is: first time 10,000, second time 10,000, third time 20,000. I believe this loss plan still has a certain degree of rationality. Because if you get one right out of three, you can either make a profit or continue to survive in the market. Not being kicked out of the market is itself a success and presents an opportunity to win.
2. Grasping the overall market trend is much more challenging than trading in a range because trends involve chasing prices up and selling them down, requiring a strong conviction to hold positions. On the other hand, buying low and selling high aligns well with human nature. The more a trading strategy aligns with human nature, the less money can be made; it is precisely because it is difficult that it is profitable. In an upward trend, every violent pullback should be an opportunity to go long. Do you remember what I said about probabilities? So, if you're not in the market or you've exited, be patient and wait for a drop of 10-20% to be bold and buy.
3. Set profit and loss targets. Setting profit and loss targets can be said to be the key to determining whether one can be profitable. In several trades, we need to ensure that total profits exceed total losses. Achieving this is not difficult at all; just follow these points: ① Each stop loss ≤ 5% of total funds; ② Each profit > 5% of total funds; ③ Total trading win rate > 50%. Meeting the above requirements (profit-loss ratio greater than 1 and win rate greater than 50%) can achieve profitability. Of course, it can also be a high profit-loss ratio with a low win rate, or a low profit-loss ratio with a high win rate. Anyway, as long as the total profit is positive, that’s enough. Total profit = initial capital × (average profit × win rate - average loss × loss rate).
4. Remember not to trade too frequently. Since BTC perpetual contracts trade continuously 24/7, many beginners trade every day, and with 22 trading days in a month, they almost trade every day. As the saying goes: 'Those who walk by the river often get their shoes wet.' The more you trade, the more likely you are to make mistakes. Once you make a mistake, your mindset can deteriorate; when the mindset deteriorates, you may act impulsively and choose 'revenge' trading: possibly going against the trend or over-leveraging. This can lead to a series of mistakes, easily resulting in huge losses on paper, which may take years to recover.
Points to note when rolling over positions:
1. Enough patience. The profits from rolling over positions are massive; as long as you can successfully roll over a few times, you can earn at least a million or more. Therefore, you should not roll over lightly; look for high-certainty opportunities.
2. High-certainty opportunities refer to a scenario where there is a sharp drop followed by sideways consolidation, then a breakout upwards. At this time, the probability of trending is very high, so you need to identify the trend reversal point and get in right at the start.
3. Only roll long, do not short.
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