As a new type of contract, perpetual contracts have evolved from traditional futures contracts. Compared to traditional futures contracts, the characteristic of perpetual contracts is that they do not have a fixed delivery date, and their trading prices are very close to the trading prices in the spot market, mainly achieved through the funding rate mechanism. Because perpetual contracts do not have a delivery date, they are a type of contract suitable for long-term holding. If you want to know how to make money with perpetual contracts, it is best to understand several mechanisms in the futures market and learn how to make reasonable price markings. Now, let me bring you a tutorial on how to operate perpetual contracts.
How to make money with perpetual contracts?
One, analyze the market
In the cryptocurrency market, there are unidirectional and volatile markets. Generally, a unidirectional market only occurs for a period of time when there is either a unidirectional rise or fall in the cryptocurrency market. This type of market is the easiest to operate; investors only need to buy low or sell high. In a non-directional market, it is not suitable for medium to long-term trades, only short-term trades, buying low and selling high, taking profits whenever possible.
Two, analyze the trend
The second step is to observe the trend. You can refer to daily candlesticks, weekly candlesticks, or monthly candlesticks, and analyze the long-term factors affecting mainstream coins to determine whether mainstream coins are rising or falling over a period of time. If you do not look at the trend before entering the market, and blindly chase after rising prices or sell falling prices, you can only leave the market in a miserable state. After judging the trend, it is better to set a rough operational goal. One could say that judging the trend well means you are already halfway there.
Three, look for good entry points
Even if you see that the trend of perpetual contracts is good, you should not rashly enter the market. You should first choose a good entry point; otherwise, it is easy to be stopped out by the market. For example, in the recent cryptocurrency market, it has been in an upward trend, but many people who went long still lost money. Why? It is because the entry point was not chosen well.
Four, choose the right timing
The cryptocurrency market has its own rules. Generally, from January to May every year is the bullish season, and one can buy low. From May to September, the market experiences a volatile downward trend, with some upward movements in between, making it important to buy low and sell high. In the second half of the year, there are often large drops or surges, which is also the most profitable period.
Five, control your position size
Because only by reasonably controlling your position can you have a stable opportunity for profit; otherwise, your account will only end in failure. Generally, invest 10% of your funds in the market. If your account has only $10,000, then each time you enter a position, it should be $1,000, regardless of whether it is long or short. In a favorable market situation, if the entry position is profitable, the stop-loss point is the opening price. Regardless of how confident you are in the market, do not take heavy positions. If the entry position is at a loss, never double down against the market unless you have hundreds of billions in capital to support it. Similarly, for a $5,000 account, it is best to make $500 trades.#ETH巨鲸增持 #加密股IPO季 #香港稳定币新规
