Many people lose money trading contracts, so how can one profit? Here are some strategies:
Currency selection: Only trade BTC and ETH, which have high recognition in the mainstream currency market and predictable trends, reducing risks.
Entry: For short positions, refer to important resistance moving averages above on 4-hour or longer charts, such as entering when rebounding touches the MA60 resistance; for long positions, enter at support levels below on the same or larger time frame charts when a pullback halts.
Stop loss: Set below the previous low after a downward spike and subsequent rise, such as support at 2320, spike to 2310, place stop loss around 2300.
Capital management: Limit single trade losses to 20% of total capital, and stop trading for the day; conduct only two trades per day with a single loss limit of 10%; maintain consistent positions and enter in batches, not all at once.
Trend trading: Prioritize short positions in a downtrend and long positions in an uptrend.
Other key points
Trends and hot spots: Pursue trending coins when the market is good, but be cautious.
Risk-reward ratio: Maintain around 3:1.
Review: Daily closing review of trades and summarizing experiences.
Responding to special market conditions
Wait in cash during market downturns, enter in batches when a rapid decline occurs; if no opportunity arises, remain in cash.
Risk control
Guaranteed win stop loss: If trades opened on the day have not hit the stop loss and the candlestick pattern remains intact, a stop loss may not be set.
Avoid all-in betting: Don't try to get rich quickly with all-in strategies, as this can easily lead to total loss.
Focus on familiar markets: Only trade when confident, learn to stay in cash, and do not force trades.
Avoid trading during specific time periods: Do not trade at night or on weekends to reduce uncertainty.
Control mindset: Stay calm after a stop loss, and don't blindly chase trades.
