The most adventurous approach should also be divided into three parts. That is to say, you should give yourself at least three chances.
For example, if the total account funds are 200,000, and the client allows a maximum loss of 20%, which is 40,000, then the most adventurous loss plan I suggest is: first loss 10,000, second loss 10,000, third loss 20,000. I believe this loss plan has a certain degree of rationality. Because if you get one right out of three, you can profit or continue to survive in the market. Not being kicked out by the market is itself a kind of success; there is a chance to win.
2. Grasp the overall market trend. Trends are much harder to trade than fluctuations because trends involve chasing rises and cutting losses, requiring strong conviction in your positions, while buying high and selling low aligns well with human nature. In trading, the more it aligns with human nature, the less money you can make. It's precisely because it's difficult that it makes money. In an upward trend, every violent pullback should be an opportunity to go long. Do you remember what I said about probability? So, if you’re not on the train, or if you got off, patiently wait for a 10-20% drop, and then be bold in going long.
3. Set designated take profit and stop loss targets. Take profit and stop loss can be said to be the key to determining whether you can make a profit. In several trades, we need to ensure that total profit is greater than total loss. Achieving this isn’t difficult; 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%. If the above requirements are met (a profit-loss ratio greater than 1 and win rate greater than 50%), you can achieve profitability. Of course, you can also have a high profit-loss ratio with a low win rate or a low profit-loss ratio with a high win rate. Anyway, just ensure that total profit is positive, which means total profit = initial capital × (average profit × win rate - average loss × loss rate).
4. Remember not to trade too frequently. Since BTC perpetual contracts are traded 24 hours a day, many beginners operate every day, nearly trading every day of the 22 trading days in a month. As the saying goes: those who walk by the river often get their shoes wet. The more you operate, the more likely you are to make mistakes. Once you make a mistake, your mindset can deteriorate, leading you to make impulsive decisions and 'revenge' trading, which may go against the trend or involve heavy positions. This can lead to a series of wrong steps and could easily cause huge losses that may take years to recover.
A few points to note when rolling positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can roll successfully a few times, you can earn at least a million. Therefore, you shouldn't roll easily; look for opportunities with high certainty.
2. High-certainty opportunities refer to a sharp drop followed by sideways consolidation, then a breakout upwards. At this point, the probability of following the trend is very high, so you need to identify the point of trend reversal and get on board right from the start.
3. Only roll long positions, do not take short positions. #山寨季來了？ $BTC
