#市场反弹预测 In the cryptocurrency world, contract trading appears mysterious but is not hard to understand. As the saying goes, one cannot learn to swim by standing on the shore; for those wanting to dive in, it may be wise to start with small funds. After all, there is a significant gap between theoretical understanding and practical operation.
One, initial capital planning
For beginners in futures trading, a starting capital of 1,000 to 10,000 yuan is relatively appropriate. The trading market is like a school that requires tuition, where many people pay high fees. Many start by investing all their savings or even borrowing to participate, ultimately ending up with nothing and facing family breakdowns. Using a small amount of capital to accumulate experience and increasing the principal only after achieving stable profits is the wise approach. Otherwise, even if experience is accumulated, the principal may be lost, making all efforts futile. If stable profits cannot be achieved in the end, it is also important to exit in a timely manner. Exiting at the right time is also a form of stop-loss, avoiding the waste of valuable time on futile matters.
Two, abandon market predictions, focus on risk-reward ratio
In cryptocurrency trading, direction is not key; we should abandon predictions about the market. Some may wonder, how can we trade without predicting the market? After all, one must choose a direction to enter. In fact, not predicting the market does not mean making no judgments, but rather acting based on what is 'worth it,' that is, the risk-reward ratio. We should enter positions at high risk-reward ratios, so even if the judgment is wrong, the losses are limited; if the judgment is correct, we can reap substantial profits. It is like the struggle between hyenas and lions on the grassland; vultures do not predict who will win or take sides but wait for the outcome to clarify before acting.
Three taboos to avoid in cryptocurrency trading
Not setting stop-loss: Not setting a stop-loss in contract trading is like driving a car without brakes; when the market turns unfavorable, it can lead to huge losses.
Not knowing when to take profits: not understanding the importance of timely profit-taking can mean that profits may only exist on paper and can vanish at any moment due to market reversals.
Leaving the market too early: In a big market, rushing to exit with a small profit can lead to missing out on larger profit opportunities later.
Holding against the trend: Going against market trends and stubbornly holding positions can ultimately lead to significant losses.
Blindly trying to catch the bottom: During a steep price decline, constantly trying to catch rebounds or pick bottoms often results in being buried by the market.
Rashly trying to catch the top: When prices soar, hastily attempting to short can easily lead to major losses.
By comparing the above taboos, investors may evaluate how many they have committed.
Four, the essence and cultivation of speculation
Speculation is not just about hard work; luck plays a significant role, as the market rewards those who are in the right place at the right time. However, without long-term accumulation and practice, it is difficult to seize opportunities even when luck strikes. Speculation is quite similar to studying; one may study hard for ten years just to shine on a single occasion.
Taking the trend + rolling position strategy as an example to explain how to achieve huge profits. In this strategy, there are two core points: patience in waiting and patience in holding positions. The emergence of a trending market will inevitably be accompanied by a consolidation K-line pattern. For instance, in Bitcoin, there have been horizontal consolidation K-lines at both $30,000 and $40,000. We need to patiently wait for similar signals to appear before entering positions. At this time, the stop-loss can be set five percentage points below the low. The stop-loss is set slightly larger because it is difficult to wait for such signals; if we are too timid and miss out, the previous wait will be in vain, so it is better to endure some potential losses.
After establishing the base position, if the market rises as expected, it’s time to test the patience of holding positions. Do not easily exit just because of a price pullback after a certain increase. In a trending market, always remember that patience in holding positions can yield substantial profits, and do not turn trend trading into short-term operations. Otherwise, even in a bull market, most people will struggle to earn money. Assuming the initial capital is 50,000 yuan, obtaining three times the return in a trend trade would increase the capital to 150,000 yuan. After this trend trading ends, the capital is put into the next trend trade, continuing to apply the 'two types of patience.' If the next wave also achieves three times the profit, the capital will grow to 450,000 yuan. By repeating this process, the next time it can exceed one million yuan. In Bitcoin contract trading, for a perfect operation in a trending market, three times the profit is just the lower limit, as generally, even with low leverage, five times or higher returns can be achieved.
Of course, this explanation is not exhaustive, and many details require investors to explore in practice. Otherwise, it may seem like one has learned but finds it hard to implement.
Five essential elements for successful trading
Learn patience and discipline: patiently wait for suitable trading opportunities and strictly adhere to trading discipline, without being swayed by emotions.
Do not blindly chase highs: the market is never short of opportunities; do not rush to chase highs just because you missed an opportunity, believe that opportunities will arise again.
Strictly execute the plan: Regardless of market ups and downs, consistently and strictly follow the established trading strategy.
Accept long-term growth: Trading is a process of continuous learning and improvement; do not fantasize about getting rich overnight and be prepared for long-term dedication.
Continuous learning and review: seriously summarize each successful and failed trade, identify personal strengths and weaknesses, and continually optimize trading methods.