Yesterday's spike caused many people to lose everything!
I opened eight long positions, and yesterday the actual drawdown was only a little over 300 U, I only had one forced liquidation, with the same long positions, my entry point wouldn't get wrecked?
This is because I perform simulation calculations before opening a position!
And many people open positions randomly; they just think of a few times leverage and open as large a position as they have money for! There is no plan at all!
Next, I will share a trading tip on how to perform calculations before placing an order!
When you are optimistic about a coin and believe it will rise, the first thing to do is to look at the fundamentals, whether it's news from your friends or recommendations from KOLs, always check the fundamentals first; don't blindly follow trades!
How to look at the fundamentals? I've already shared it in the last trading tips, so I won't repeat it!
After the analysis given by AI, for old coins over six months, first look at where the support level is, while for new coins this year, first look at where their previous low is!
Let's take $RESOLV as an example:
We can see that the strong support level given by AI is at 0.15507, so our strong liquidation price when opening a position cannot be lower than 0.15507!
His previous low is 0.1284, and combined with the current expectation of moving up, then the previous low is not achievable within this time frame, so we don't need to look at the previous low!
Next is the calculation before placing an order; Binance does not display the liquidation price when opening isolated positions, but Binance provides calculation software in the upper right corner of the order page!
Click +/= to open the calculation software:
I open positions in two situations: one is chasing orders, and the other is taking orders!
Still taking $RESOLV as an example,
The current price is 0.17, I believe there is a recent favorable factor, but I don't know when it will materialize? The market is also fluctuating, and yesterday it had a spike?
Worried that buying in will lead to a drop, yet afraid of missing out on favorable news,
Then I would use three times leverage, entering with a large position!
As shown in the figure below:
Through calculations, you basically have a sense of the low, and then adjust the amount based on your position, so when chasing in, it basically won’t wreck my position!
Actually, I rarely chase orders; I usually take orders! Unless I am very sure!
I also do not recommend everyone to chase orders!
Placing orders is simple, just set them near strong support levels, a few points above the support level,
I usually place orders at five times leverage, sometimes depending on the situation, I may even have orders at 20 times leverage, but I can hold the five times orders for a long time, while with 20 times orders, I run as soon as it goes up a bit!
The choice of leverage also depends on the size of your funds; small funds lead to large bets, and large funds lead to small bets. I am conservative; I would rather earn less than lose money!
The calculation software is very useful; I often use it to calculate, and through calculations, I reasonably adjust my position!
Maximize your profits!
In contract trading, theory is theory, and practice is practice,
In actual trading, there are many special situations that require adaptability, but remember two points: do not use all your capital, and do not rush!
The cryptocurrency world is never short of black swans; there is not a single good thing about the manipulators; you think with your full position and many bullets, you won't get wrecked,
But the manipulators will eventually let you know what it means to rise without a low line and fall without a ceiling!
Chasing highs and cutting losses always leads to one outcome, which is forced liquidation!
In a bull market, there are many spikes; don't be anxious; be patient, focus on one coin, first place an order to take, and if you can't take it, that's fine, don't chase, just look for the next one!
This circle is never short of projects; new projects emerge every day!
If this tweet has helped you, feel free to like, share, and comment!
The more everyone communicates, the more sparks of wisdom can collide!
Finally, I wish everyone to achieve their wishes! Stay healthy! Achieve financial freedom soon!
