One, newbies should understand these three basics first to avoid 90% of detours
About contracts
There are two types of contracts: perpetual contracts and delivery contracts. Perpetual contracts have no expiration date, so newbies can practice with them; delivery contracts have an expiration date, so only engage when you have some experience. Don’t use leverage recklessly; just because you use leverage doesn’t mean you'll double your profits. For example, with 10 times leverage, if the price moves against you by 5%, your capital will lose 50% directly, which is too scary! Newbies are advised to start with 5 times leverage and get familiar slowly. Also, always set a stop loss; establish a stop loss line of 5% - 10% for every trade. For instance, if you have 8000 yuan in capital, the maximum loss per trade should not exceed 800 yuan, so don’t be reluctant to cut losses.
Choosing the right platform is crucial
Choose the top three platforms: Binance, OKX, and Huobi. Those small platforms have a 90% chance of going bust, and when that happens, you’ll lose your money and have nowhere to cry. Also, look at the fee structure; for spot trading, choose those with a fee below 0.1%, and for contract trading, pay attention to the funding rate—the lower, the better, as it saves you a lot.
Never forget the iron rules of risk management
Never hold onto losing positions. If your unrealized loss exceeds 10%, regardless of how reluctant you are, you must stop loss unconditionally. As long as you have capital left, there’s always a chance for a comeback.
Two, trading strategy: only earn stable money
Trend trading relies on these two rules
Look at the 4-hour chart and use moving averages to determine the trend. If the 50-day line is above the 100-day line, and the 100-day line is above the 200-day line, then boldly go long; conversely, go short. Combine this with indicators; when MACD shows a golden cross above the zero line and RSI is greater than 50, enter the market for a higher probability of profit.
Remember this motto for swing trading
Don’t rush to bottom fish when prices are falling. Wait for three consecutive bullish candles and for prices to stabilize above the previous low before buying. Likewise, don’t blindly chase highs when prices rise. If the price deviates from the moving average by more than 20%, don’t chase it; wait until it retraces to the moving average before considering.
Three, capital management: how to divide 8000 yuan in capital (super practical)
Using leverage has its rules
Newbies should use 5 - 10 times leverage. If you have 8000 yuan in capital, with 10 times leverage, you can open contracts worth up to 80,000 yuan, thus reducing the liquidation risk by 50%. If you make a profit and reach 20%, withdraw 20% of the profit. For example, if you make 1600 yuan, withdraw 320 yuan, and continue to operate with the remaining money.
Building positions in batches is safer
Use 40% of your capital for the first position, which is 3200 yuan, to test the waters. If it drops by 5%, stop loss, with a maximum loss of 160 yuan. If the price breaks through the previous high, increase your position by 30%, which is 2400 yuan. Keep the remaining 30%, also 2400 yuan, in reserve in case of a crash, so you can use it to average down or close positions.
Four, practical steps (using BTC as an example)
Don't blindly choose stocks
Focus on BTC and ETH; these two currencies have strong liquidity and are three times more resilient than those altcoins, making them relatively less risky.
Accurately judge the trend
Check if the moving averages are in a bullish arrangement, and see if MACD has a golden cross. If the moving averages are bullish and MACD has a golden cross, then go long; if the moving averages are bearish, don’t think about bottom fishing.
Be cautious when building positions
Open 5 times leverage, using 3200 yuan to buy BTC worth 26000 yuan. Set the stop loss point at 25700 yuan; if it drops to this price, then stop loss, with a maximum loss of 300 yuan. Set the take profit point at 28000 yuan; if it rises to this price, then sell for a profit of 400 yuan.
Daily risk control cannot be relaxed
Always check your position before the market closes each day; it should not exceed 10 times your capital. Also, adjust your stop loss point according to price movements to protect your profits; don’t let your hard-earned gains slip away.
Currently, the market is giving another opportunity. If you want to seize it, hurry up and follow the layout. Don't wait until others take profits and exit before you make your move!
