When trading cryptocurrencies, many people will encounter a problem when adding positions: If I add positions and the market continues to fall, won’t I lose more? But if I don’t add positions and the market goes up, won’t I lose again? Such a choice puts many people in a dilemma when adding positions in cryptocurrencies.
In fact, there are certain methods and techniques for adding positions in cryptocurrency trading.
1. Increase your position step by step
2. After confirming the trend, do not hesitate and boldly increase your position
3. After a few days of decline, if there is a small rise, add to the position
4. If the price drops slightly, add less; if the price drops sharply, add more.
When trading cryptocurrencies, chasing orders is something you must learn. Chasing orders requires certain methods and skills. Chasing orders usually occurs when the price of a cryptocurrency fluctuates violently, which is when there are huge risks. Therefore, chasing orders naturally involves greater risks.
How can we reduce this risk to the lowest level? Let's briefly talk about the principles of chasing orders.
1. Choose the timing of chasing orders
Chasing orders mainly involves trading when the market price fluctuates violently. Therefore, the time to chase orders is when the price of the currency begins to fluctuate violently. How to judge when the price of the currency begins to fluctuate violently? The main existence is when the price breaks. Breaking mainly refers to breaking all the combinations of K lines. Specifically, it includes support level, channel, pressure level, etc.
2. When to choose to close a position after chasing an order
Based on long-term market observations, we found that under normal circumstances, when a currency price breaks, the price will move a few points in the direction of the break depending on the currency. If we choose to follow the order, we will close the position when we have made a few points of profit.
3. Specific operation skills
Normally, when we place an order when the currency price fluctuates drastically, if the order we place changes at the time of execution, then your order will be at the price when you originally placed the order.
Another thing is that when we are trading cryptocurrencies, the price will fluctuate quickly, so after our order is executed, we should immediately set a take-profit price. In this way, the transaction can be automatically completed after the exchange rate reaches the take-profit price. The main purpose of this is to prevent investors from missing the best time for trading due to their greed.
When trading cryptocurrencies, if you want to accurately grasp the skills of adding positions, in fact, in a nutshell, it is necessary to have an accurate judgment on the future development of the market, and once a wrong judgment occurs, there should not be too much unnecessary losses.
