Brothers! You might not believe it!!!
Last week, I entered the contract market with a capital of 10,000, and after 7 days, my account skyrocketed to 300,000!
It's not metaphysics, it's not insider trading, today I'm going to show you the "bloody rules" that I gained through 20 liquidations!
Especially the last point, those who know it now are secretly using it......
1. Choose the right contract type to reduce risk
- U-based contract (priced in USDT): suitable for beginners, small fluctuations, controllable risk.
- Coin-based contract (priced in BTC/ETH): suitable for long-term holders, but the price fluctuations are large, easily leading to liquidation.
- Perpetual contract vs. Futures contract: perpetual contracts have no expiration date, suitable for short-term; futures contracts have fixed settlement dates, suitable for arbitrage.
Beginners are advised to start with low-leverage U-based contracts (5-10 times) to avoid liquidation from high leverage!#币安Alpha积分
2. Learn technical analysis to capture buying and selling points
- K-line patterns: such as 'head and shoulders', 'double bottom', etc., to predict trend reversals.
- Moving average system: combining 5-day, 20-day, and 60-day moving averages to determine support/resistance levels.
- MACD/RSI indicators: assist in judging overbought and oversold conditions, avoid chasing highs and cutting losses.#BTC
3. Implement strict stop-loss to avoid liquidation
- Fixed stop-loss: single trade losses should not exceed 2% of the capital.
- Trailing stop-loss: after reaching the profit target, gradually move up the stop-loss to lock in profits.
- Do not hold onto losing positions: timely stop-loss during losses, do not fantasize about breaking even, otherwise it’s easy to get liquidated.
I once suffered a 50% loss due to not implementing stop-loss, now I strictly enforce discipline!#加密市场反弹
4. Control leverage, do not be greedy
- Beginners are advised to use 5-10 times leverage, advanced traders can try 20-50 times, but 100 times leverage carries extremely high risks.
- The higher the leverage, the greater the probability of liquidation; only a 1% reverse fluctuation on 100 times leverage can lead to liquidation.
- Withdraw part of the profits after gaining, to avoid profit drawdown.
High leverage is a double-edged sword; used well, it leads to wealth, used poorly, it leads to liquidation!
5. Trade with the trend, do not go against it
- Bull market: buy on dips, hold quality coins.
- Bear market: sell on highs, avoid bottom fishing.
- Sideways market: sell high and buy low, but need to enter and exit quickly.