In position management, "chasing orders" refers to buying or selling when the market trend is clear, such as when the price breaks through a key level or a one-way trend emerges. However, chasing orders must be coordinated with position control and should not blindly follow the trend. Specifically, you can do this as follows:
1. Position Preparation Before Chasing Orders
First, confirm whether the trend is valid: Chasing orders are best chosen when the trend is clear, such as when the price breaks through recent resistance levels, trading volume increases, and the moving averages are in a bullish pattern. Avoid chasing orders frequently during volatile markets. During this period, it is recommended that your total position should not exceed 50% of your total assets, leaving some funds to cope with sudden pullbacks.
Chasing orders for a single asset should have a limit: Even if the trend is clear, your chasing position for a single asset should not exceed 10%-15% of your total assets. This is consistent with the previous single-asset position guidelines to avoid excessive losses in a single asset if the trend reverses.
2. Position Management When Chasing Orders
Chasing orders in batches, don't buy all at once: When chasing orders, build a position in two or three batches. For example, enter the market with 40% of your planned chasing position for the first time. If the trend continues, such as a 5% increase or a breakout, add another 30% to cover your position. Keep the remaining 30% as a reserve to prevent being stuck in a pullback after fully investing all at once.
Strictly control your position size when chasing orders with leverage: If using leverage to chase orders, the leverage ratio is recommended to be no more than 5x, and the margin for the chasing position cannot exceed 20% of your total margin. For example, if your total margin is 10,000 yuan, only 2,000 yuan can be used to open a chasing order. Set your stop-loss at 3%-5% of the entry price to avoid margin calls.
3. Position Adjustment After Chasing Orders
Quickly move your stop-loss up: After entering a chasing order, if your profit reaches 2%-3%, immediately move your stop-loss to the entry price (this is called a "break-even stop-loss") to prevent a sudden trend reversal that could wipe out your profits or even turn them into losses.
Take profits in batches: When profits reach your expectations, say 8%-10%, you can close 50% of your position to lock in profits, leaving a portion of the remaining position to see if the trend continues. At the same time, move your stop-loss line to 50% of your profit point. For example, after a 10% profit, move your stop-loss line up to 5% of your profit point. $BTC $ETH $XRP #币安钱包TGE #加密市场回调 #山寨季何时到来？
