Many people lose money when trading contracts. How can one trade profitably?
1. If you are going to trade, only aim for the top one or two positions.
2. Primarily use the important moving averages above the 4-hour level to determine the entry for short positions in batches.
3. Stop loss: Place it at the previous low after a downward spike followed by a rise.
4. Stop loss capital: If it reaches twenty percent of the total capital, do not open any positions for the day.
4.2. Daily operations generally focus on two trades, keeping the single trade stop loss control at 10%. The size of the position for each trade should remain consistent.
5. Try to enter the market in batches, do not load all your bullets at once! Follow the trend as much as possible; when the main trend is bearish, try to open short positions, and vice versa. When the overall market trend is good, chase hot coins while controlling the risk-reward ratio, keeping it around 4:1. If the daily stop loss drawdown reaches fifteen to twenty percent of the capital, do not open any positions for that day.
Daily review of the market: Stay in cash and wait to enter in batches on dips. If there are no opportunities, just remain in cash. In such market conditions, not losing money is equivalent to making money.
6. Guaranteed stop loss: When the conditions for opening a position on the day do not trigger a stop loss and the same level K-line patterns do not show signs of damage, you can choose not to implement a guaranteed stop loss.
Never think about going all in for a quick fortune; only trade in the market that belongs to you! Learn to stay in cash, do not forcefully open positions, and avoid overnight trades!
Avoid trading over the weekend when there are no market movements!!!
After being stopped out, control your mindset and do not act emotionally! Do not rush to open positions again!