Today I will talk to you about the survival rules of trading contracts with $5000.
First, remember to only trade Bitcoin! Don't touch those flashy altcoins. I've seen too many people open long and short positions on seven or eight different cryptocurrencies at the same time, and in the end, they either get liquidated or are stuck badly. We come to the crypto world to make money, not to be martyrs!
Always set a stop-loss when opening a position! If the market is volatile, set your stop-loss further away; if the volatility is low, set it closer. Do not follow those reckless newbies who don't use stop-losses; in the end, they just end up deeper in losses until liquidation. Remember, a stop-loss is to ensure you see tomorrow's sun!
Set the liquidation price at a position that is slashed in half! For example, if you open a long at 66000, set the liquidation price at 16500. Don't think it's too far; when a black swan event occurs, you will know how life-saving this tactic is. Last March's crash, how many people couldn't even hold onto their spot positions, let alone contracts!
Leave enough bullets for additional positions! With a $5000 principal, use a maximum of $500 each time; the remaining $4500 is your lifeline. Adding positions should follow a strategy: the first time add $30, the second time $60, the third time $120... this way, layer by layer, a big rebound can turn your losses into profits. But remember, adding positions is not mindless replenishment; wait for the market to stabilize before taking action!
Be cautious with hedging! Unless you are left with no other options, don't touch it. Especially don't hedge with different cryptocurrencies; that's just asking for trouble. If you really want to hedge, stick to Bitcoin, and wait until the big trend is over to get out of your positions.
In the early stages of a bull market, don't recklessly open short positions; in the late stages, don't stubbornly go long! You can't guess the intentions of the market makers; no matter how much you guess, it's futile. Intraday swings look tempting, but they often lead to longing at the peak and shorting at the bottom. Keep your vision long-term, at least look at the trend for a week before taking action!
Finally, if you can execute the above points, you can make money just by trading contracts. But if you can't control your hands, it's better to quit early! This morning I made a small profit from trading Sol, just enough for a pig's trotters meal!
