Any trade is just trial and error, which determines that going all in may suffer a significant blow.
Therefore, a staggered attack is the best strategy, and a 1:2:1 strategy can be used based on the established position funds. From experience, intraday trading of contracts is suitable for several time frames of candlestick charts: 1-minute chart, 3-minute chart, and 5-minute chart.
1-minute chart: Commonly known as "snatching hats." This trading method aims to profit from extremely short trading opportunities, requiring traders to have no patience. Quick entry and exit. Generally, each profit will not be too much, and the stop-loss points set during trading are also few.
In addition, in this trading method, transaction fees account for a larger proportion of profits, generally suitable for low-fee or intraday trading. One more point to note is that some varieties' 1-minute candlestick charts are not very active, and traders should try to avoid these varieties.
3-minute chart: The 3-minute chart is used by many intraday traders for this time period, with many trading opportunities every day. The price of the cryptocurrency is set within a fluctuating range, and the fluctuating range also has a certain trend, avoiding the situation where some indicators become ineffective due to excessive fluctuations in the 1-minute chart.
This trading operation method allows for setting a larger profit target for each trade, and the stop-loss range can also be appropriately widened.
5-minute chart: Operations can be further stabilized based on the 3-minute chart, although the daily trading opportunities are fewer than for the 3-minute chart. However, once a trading pattern appears, it is relatively stable, and monitoring the market is not as exhausting as with the 3-minute chart.
The one-third method is a capital management operation that divides the account funds into three parts, aimed at preventing you from operating with full positions.
Capital is our lifeline, and we must ensure the safety of our lives.
The application of the one-third method is to use one-third of the funds to establish a position. If the direction is correct after building the position, we maintain one-third and do not chase orders midway, as chasing orders often increases risk.
The one-third method can be decomposed into one-sixth method and one-ninth method, making operations more flexible.
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