Trading tips for contract trading (3)
Why do we need to review after the transaction is over!
We always say that failure is the mother of success!
It is because the summary review after failure can prevent you from repeating the last failure!
We who trade must learn to review,
Review every operation, summarize experience and lessons, and more importantly, record these experiences and lessons clearly!
Old friends who follow my Twitter can see my summaries of daily transactions!
And these transaction summaries are the biggest gains I have made since the real trading challenge!
The order will be liquidated, the profit will be retraced, but my trading experience will not be lost, it will allow me to quickly rise again!
So how to do the review?
The first thing to review is to calculate the amount of single loss and profit.
How much did you lose in this order? How much impact does this amount have on your overall position?
To put it bluntly, is your position management right!
To do contracts, you must first be in isolated mode. Of course, rich people in cross mode don't need position management!
So how to manage positions?
For example, if you have 800U of initial funds, the first batch of orders will not exceed three, and each order is 100U, and the leverage cannot exceed three times,
Why do this?
First of all, you can't make money in every order, so you need to reserve enough follow-up order funds and funds for adding positions when necessary,
Make a profit on one order, and open the next one. With the frequency of Binance listing coins, don't be afraid of not having orders to open!
When your funds double, you can appropriately increase the number of orders or positions!
And when you lose money, you should appropriately reduce the number of orders or positions, so that the overall position remains in a reasonable state, so that you always have a chance to make a comeback!
So when reviewing, first look at the profit and loss, which is the basis for the next order!
The next thing to review is, is the trend right?
It means whether the long and short direction is correct! Only by making the right direction can you make money!
It can be seen from my real trading challenge that making the right direction is very important!
From June, I started the real trading challenge, named it the Air Force, and it looks like a big Air Force at first glance,
At that time, the market was indeed dominated by bears. I specifically did a data analysis to analyze the performance of contracts on alpha tokens and concluded that shorting would make money.
I did make a lot of money in the first month!
But in July, there were several consecutive skyrocketing demon coins, plus $BTC constantly hitting new highs,
After losing a few orders, I reviewed and concluded that I can't short anymore, and quickly adjusted my strategy!
After mid-July, the funds grew rapidly. If I hadn't sold too early, I would have completed the real trading challenge amount. Of course, there are no ifs in this world!
So how to judge the trend?
Just look at the price of $BTC $ETH!
They both rose, and you are still shorting, which is going against the market!
For example:
How many people went short on $MYX a few days ago, and the result became the fuel for the dealer to pull the market,
The bears contributed the most to this round of gains for $BTC and $ETH!
In addition to the direction, there are also some systemic risks: such as black swan events, sudden policy changes (such as tightening industry supervision)
We can't accurately judge the rise and fall of the market, but when the trend has formed, we must not go against the trend!
This is the meaning of the review!
After reviewing the trend, the next step is to see if you have chosen the right coin!
Why did you choose this coin?
What is the basis for entry?
Technical pattern breakout?
News-driven?
Following the trend?
Or KOL shouting orders?
For example:
$C was listed on Binance spot shortly after it was listed on the contract, which aroused my great interest, indicating that this dealer is strong, and I started searching the entire network for information about it.
Combined with all the information, I concluded that it is expected to be listed on the Korean exchange!
Then I opened a long order at 0.031, even if it回调to 0.25, I didn't set a stop loss. The highest profit was 2000U. I didn't take profit after the good news came out. I wanted to wait and see its performance after listing on the exchange. As a result, I left with a stop loss of 100U in the end,
I was right at the beginning of this order, but I didn't take profit in the end, which made me uncomfortable for several days, but I also accepted the lesson. There are also differences between Korean exchanges. In addition to listing on UP, I will take profit after good news, and I will not expect the performance after listing!
This is the review, if you lose, you need to know where you lost? Avoid making such mistakes again next time!
If you are making a profit, you must understand where your profit is coming from? Continue to repeat your profitable operations!
After reviewing the coin selection, the next step is to review whether there is a problem with your operation?
Did you set a stop loss?
Did you close the position early?
Did you add positions emotionally?
Misjudgment of support/resistance?
Ignored the rebound signal?
Did you hold it for too long due to the "fantasy of recovering the capital"?
Did you take profit early due to fear?
These need to be reviewed one by one, not only reviewed, but also recorded in a table!
It's better to have a bad pen than a good memory. With a table record, look at it when you have nothing to do, and remind yourself not to make the same mistake!
Finally, review the single contract's handling fee, funding fee, and liquidation fee!
Many traders ignore these three fees, and don't even know how they are charged!
Sometimes profitable orders will become losses due to fees,
First look at Binance's handling fee:
Basic fee rate (ordinary users/VIP 0): U-based contract: Maker (limit order) 0.02%, Taker (market order) 0.04%. Currency-based contract: Maker 0.015%, Taker 0.04%.
BNB Deduction Discount: Use BNB to pay the handling fee, and the U-based contract fee rate will be reduced to Maker 0.018% / Taker 0.036% (saving 10%).
High-Frequency Trading Cost Example: Opening a 50x leverage with a principal of 10,000 USDT, the Taker cost for a single complete transaction (opening + closing) is about 50 USDT (0.04% × 10,000 × 50 × 2
The order in the picture is a loss, the handling fee is more than the profit. Of course, this situation is relatively rare, but we can't ignore it!
Funding Fee:
Calculation logic: Settlement every 8 hours (UTC 00:00/08:00/16:00), the formula is: funding rate = premium index + Clamp (interest rate - premium index, -0.05%, 0.05%) (preset daily interest rate is 0.03%).
Normal range: ±0.01%~0.03%, extreme market conditions can reach ±2%/hour (such as ALPACA contract short daily cost 48%).
Position Holding Cost Example: Holding a 10,000 USDT contract for 24 hours, the total funding fee is about 3 USDT at a rate of 0.01%.
This funding fee is not collected every eight hours. Under the top fee rate, the funding fee will be collected every hour when it is negative!
How many traders who shorted were drained of their principal by the funding fee, and the profit was not enough to pay the funding fee!
Of course, there are also experts who have made a lot of money through funding fees!
Liquidation Fee:
0.5% will be charged when the position is forcibly closed (Example: 10,000 USDT position liquidation fee is 50 USDT)
Open the Binance contract profit and loss analysis, scroll down to find the funding fee and transaction fee!
You can see all your expenses,
It can be seen that in the past few months, I have contributed 390U to Binance in handling fees, but I used my friend's commission rebate link, and automatically returned 20% of the handling fee, which can be regarded as recovering some of the cost!
Don't ignore the commission rebate, it may be the last straw, you must get a commission rebate if you don't have one,
This is my friend's link, automatically returns 20%, you can take this if you don't have a rebate:
https://maxweb.cc/join?ref=M12EF3SV
In the end, I want to say that there are many traders who like to go all in and gamble!
But trading is not gambling. If you have such a mentality, you might as well go to Macau directly, which is simpler!
Trading is a game with the market. You must have a plan, a strategy, and rules to trade!
Don't go all in, you must leave capital to make a comeback. Just like the 回调these days, the dealer inserted pins to liquidate contracts, and many people directly returned to zero!
Without funds to bottom out, how can you make a comeback!
Those who believe that going all in is a wisdom are potential customers of health products!
Look at Liang Xi, a genius trader,
Think about yourself, do you have his sense of the market? Do you have unlimited bullets?
You must know yourself and the market!
If this tweet has helped you, then please give it a one-click three-link, like, retweet, and comment on this tweet!
I wish every trader can get what they want! Good health! Achieve financial freedom as soon as possible!
