My trading experiences over the past few days have brought me a lot of thoughts, especially on how to find my rhythm in a market full of fluctuations and uncertainties. After experiencing an increase in capital from 40 U to 150 U, I deeply felt the importance of stable strategies in contract trading, and today I want to share some of my insights with everyone.
1. Go with the trend and seize the rebound from overselling.
Recently, the market has given me a great rebound opportunity, especially after the market downturn, which indeed provided many short-term trading opportunities. Remember, in the face of a one-sided market, the most important thing is to go with the trend. When the market is clearly rebounding, we should seize the right moment to open positions, watch more and act less, and not rush to predict the market's turning points.
I opened a long position on ETH and successfully made a small profit of 50 U near 3680. Although I ultimately missed out on greater profits due to closing too early, the thought process behind this operation was correct; the market's rebound trend was clear, and it was just about following up at the right time.
The idea is right, but execution needs optimization. The success of trading relies not only on correct market judgments but also on the accuracy of execution. For example, in this operation, I missed out on more profits because I was too eager to close and did not follow the 'holding' strategy. Especially after confirming profits, being able to hold for a while and 'extend' short-term fluctuations is crucial.
2. Control positions and open them in batches.
Reflecting on my trading strategy, the most important point is to strictly control positions, especially when the capital reaches 150 U, as we are entering a higher operation stage, making position control vital.
My approach is to open positions in batches. When the capital is low, I can slightly increase the amount invested in each position, but as the capital increases, the position sizes must gradually decrease. For example, when trading U-based perpetual contracts, I allocate funds based on current market volatility to avoid excessive concentration on a single trade. Event contracts, in particular, require caution; each investment should ideally be between 10-30 U to avoid over-investing in one go and to prevent rapid retracements due to unexpected volatility.
Stop-loss is equally crucial. I constantly remind myself to develop the habit of setting stop-losses, regardless of how many times leverage is used; stop-losses must be strictly adhered to. This is not only a measure to protect the principal but also key to avoiding excessive pursuit of profits.
3. Avoid blindly chasing positions; look for opportunities in fluctuating ranges.
The market is highly volatile, especially tonight, after the non-farm payroll data was released, the market was strongly influenced by the news, causing significant fluctuations in an instant; prices could change dramatically within a minute. At this time, we must avoid blindly chasing positions.
The best opportunities for event contracts are in fluctuating markets. Do not forcefully chase positions in a one-sided market, as this is prone to washouts and risks associated with market testing. For event contracts, I prefer to open positions near the support level on 1-hour candlesticks, avoiding blind entries during significant price fluctuations. Fluctuating markets provide a better environment for event contracts because, in such cases, we can more clearly identify price highs and lows.
Particularly note: For 10-minute level short-term trades, it is best to avoid opening positions at the crossover of two candlesticks. For instance, in the 15-minute interval from 11:00 to 11:15, opening a position between 11:00-11:05 would be safer because, during this time, the price fluctuations are relatively controllable and won't cause excessive volatility due to entering a new candlestick.
4. Leverage trading requires caution; avoid excessive position increases.
Leverage is a double-edged sword; it can amplify gains but also amplify risks. Recent operations remind me that increasing positions after making a profit must be done cautiously. I have experienced this situation myself, where I increased my positions after a profit retracement, resulting in some of the profits being given back and losses being magnified.
The correct operation should be to first enter 10% of the position, and when the market begins to fluctuate in a favorable direction, incrementally add to the position based on the situation. This effectively avoids the risk of 'heavy single positions' while allowing us to enjoy the compounding effects of market rises.
5. Respond calmly to market fluctuations and avoid emotional trading.
The core of trading is not about how much money we can make, but about surviving long-term in the market through stable strategies and strict execution. Today's fluctuations have made me more acutely aware that emotional trading is the greatest enemy of traders. The market is often filled with uncertainty; sometimes prices do not develop according to our expectations, and emotional reactions often cause us to miss real opportunities.
For example, when faced with a failed prediction, do not rush to revenge trade with a large position. Instead, calm down and wait for the market to provide clear signals again before making a decision.
Conclusion: Stability is the way to survive.
In conclusion, trading is a long-term process of persistence and continuous adjustment. Market fluctuations constantly test us, and whether we can find our position amidst these fluctuations tests the patience and decision-making ability of traders. As a contract trader, the most important thing is not short-term profits but the ability to formulate reasonable strategies, execute them strictly, and survive amidst volatility.
As I often remind myself: 'Survival is the most important thing.' The opportunities in the market are always there, but only by living long enough can we seize the next opportunity.
I hope these insights are helpful to everyone. May we all find strategies that suit us in the crypto space and move forward steadily amidst fluctuations!
