#BTC #ETH
Let me talk about my superficial methodology on secondary market spot trading.
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I only do spot trading in the secondary market.
How to improve your trading methods and position management?
Stop-profit and stop-loss are commonplace issues. For investors in the cryptocurrency circle, they will face a problem, that is, the volatility of the copycat is too large, and it is difficult to make a decision on the stop-loss of the spot. It is normal for the invested position to retreat by dozens of points over a long period of time, so it is impossible to apply the professional traders' strict stop-loss rules of a few points after adding leverage.
First of all, we must understand the importance of stop loss. When trading in the cryptocurrency circle for a long time, what we need to do is not to gamble and make 100 times the profit at one time, take off if we win, and exit the market or even go to the roof if we lose. This is obviously wrong.
The correct path should be to let your position grow in a zigzag spiral, and each retracement should be controlled within the range covered by the BETA profit of the large position on BTC/ETH.
Take my own trading plan as an example: 80% of the positions are held in BTC, and the large positions earn BETA income in BTC periodically, which will involve some BTC/ETH exchange rate transactions, and the ultimate goal is to make more and more cakes. The positions of the cottage do not exceed 20% of the total positions, and the overall stop loss does not exceed 10% of the overall positions. Because 10% of the loss can be recovered in a relatively short time by swing trading of the big cake.
For copycats, you need to zoom in and out, and the maximum loss can be 10% of the overall position.
So:
1. Invest 100% of the funds and set the maximum forced stop loss at 10 points.
2. Invest 40% of the funds and set the maximum forced stop loss at 25 points.
3. Invest 20% of the funds and set the maximum forced stop loss at 50 points.
4. Invest 10% of the funds and bear all losses. This will keep the position within the safety margin of the high-volatility spot trading of the copycat.
When the investment fails and the overall loss has reached 10%, you should stop all copycat transactions and focus on recovering the losses through BETA income. Because only with patience, BETA income is a sure win. (1:2:3:4 ratio of bottom-fishing and profit-taking sales)
During the period of suspension of copycat transactions, don’t feel guilty and think that you have missed the opportunity to get rich by not investing in copycats.
Regarding the stop-profit strategy, you need to lock in a portion of the profit and principal at the right price, and keep the remaining portion as a super long-term position, which will either return to zero or get a hundred times of excess returns.
There is never a shortage of opportunities in the cryptocurrency world; what is lacking is a good mindset and precious capital.
Please be a friend of time. For ordinary retail investors, the slowest way is the fastest way.
