#特朗普暂停新关税 $BTC I believe everyone knows not to chase rises and cut losses, but many brothers may know or have heard of breakout and breakdown orders. Below, I will share my personal views!
Personally, I believe that chasing the rise means entering a position when you see the price going up. A breakout order is essentially also a chase, but the difference lies in the position. Not all rises are breakout orders. For example, around 95000 for Bitcoin can be seen as a resistance level. If we enter long after breaking 95000, that is a breakout order, rather than just entering long because we think it will rise. Generally speaking, the more important the resistance level, the higher the win rate of the breakout order. Of course, one also needs to guard against false breakouts. Personally, I usually have two methods to prevent this. One is to take a smaller range; for instance, if the price breaks 95000, we think it will rise to around 99500. Then, what price point is better to enter? Generally, I will enter long at 96000 with a small stop loss to take profit around 98600, because if this order is not a false breakout, the price will quickly reach the take profit after the breakout. If it is a false breakout, then stopping loss and exiting is the best choice. There is no good way to see the authenticity of breakouts technically; we can only see it when the trend is completed. Therefore, a breakout order may hit the stop loss in three seconds or reach the take profit in three seconds. What we can do is to place the breakout order at the most critical position with a small stop loss, and definitely do not eat the last bite!
The thinking behind a breakdown order is the same; the more critical the position, the higher the win rate. I won't elaborate on this; just think in the opposite way. For false breakouts and false breakdowns, we cannot know until the trend is completed. Of course, this is just my personal opinion; those with different views can leave comments for discussion! Generally speaking, we still have a high win rate when placing such orders at key positions, so it is not that we cannot chase rises and cut losses. This is also what many brothers say: when they see it going up or down, they just go in. Sometimes this works very well, but most of the time, they end up being trapped. I think the reasons for being trapped may be that, first, it is not a key resistance or support level; second, there was no timely stop loss; and third, they are too greedy, wanting to eat the last bite! When trading contracts, technical skills are very important, but strategy and mentality are equally important. All three are indispensable. Here, I usually combine conditional orders to make breakout and breakdown orders, which will be more precise!
