Yuan Bao has fought on the front line of (futures, spot, stocks, and cryptocurrency) for many years. The following is a rough summary of Yuan Bao's teaching outline for contract trading. Personal opinion, please excuse if not liked


(1) Basic concepts

1. What is contract trading?

One of the forms of blockchain digital currency trading, in June 2013, Trading 796 took the lead in the Bitcoin industry to develop the Bitcoin weekly delivery standard futures - T+0 two-way trading virtual goods contract (contract trading). The emergence of contract trading ended the previous history where Bitcoin could not be shorted, marking the beginning of the prosperous development of the Bitcoin derivatives market.


2. What is it used for?

The four basic skills of personal financial management in the new era (savings, insurance, securities, trust products); one of the three major industries of wealth magnates in the world (resources, IT, finance);


3. How to do it?

Full-time entrepreneurship; part-time financial management; three essential elements for entering the market: capital (premise); technology (foundation); mindset (key).

(2) Basic strategies

1. Establish your own trading system (composed of five major systems)

a. Risk control;

b. Capital management;

c. Technical analysis - six major tools: (candlestick, indicators, patterns, trends, waves, momentum - trading volume)

d. Fundamental management (Golden Finance, Coin World);

e. Trading execution;

Trading conditions - Four essentials: (there must be a range; there must be momentum; there must be direction; there must be market points) none can be missing, otherwise it is a non-trading market;

Trading principles - Four actions: (swing trading; making predictions; methods; doing a series) - monitoring - evaluating results;


2. Establish trading principles and discipline

Principles; single currency or few varieties of contracts - BTC, ETH, etc. choose in order, mainly trend orders, light positions, right-side trading, prefer to abandon rather than make mistakes, etc.

Discipline; stop-loss is the first iron rule, strictly execute the trading system, do not increase positions on losing trades, etc.


3. Keep a diary and analyze regularly

Win rate; profit-loss ratio


4. Clarify the first characteristic of the trading market: uncertainty

Intraday short-term trading: daily closing line 4 hours 1 hour, long-term trend analysis; 30 minutes and 15 minutes period look at ranges; 5 minutes short period look for reversal tops and bottoms; 1 minute line find entry points


5. Master the three major tools of trading

a. The market decides everything (candlestick chart 'k-line' is the primary basis)

b. Do 'tracking' not predictions (can have different expected charts)

c. 'Preservation of capital' is the fundamental goal (capital is the life-and-death boundary of market trading, profit and loss are natural)


6. Trading skills - trading eight-character mantra: follow the trend randomly, with rhythm and measure

a. Direction; following the trend is king

b. Time and space; range as the lead - trading range and observation range

c. Position size; position size must be controlled, wide fluctuations in regular market follow the 123 rule; in a one-sided market can jump levels to continue holding; for exceptional emotional markets, hold lightly

d. Profit and loss; profit-loss ratio must be reasonable - profit-loss ratio ≥ 1; short-term trading looks at win rate; technical profit-loss points (support and resistance levels); psychological profit-loss points


7. Main reasons for losses (Eight taboos)

a. Against the trend (reverse positions); b. Heavy positions (over 40%); c. Emotion (out of spite); d. Holding positions (no stop-loss set); e. Chasing highs and selling lows (buy high, sell low); f. Stubbornness (conceit); g. Not correcting mistakes (sticking to the wrong direction); h. Inconsistent actions and knowledge (not following one's own trading system).


8. Introduction to common methods (Eight methods)

a. K-line method - right-side trading;

b. Trend method - cut in along the trend;

c. Pattern method - two-step tracking;

d. Wave method - enter at the top and bottom of the second wave;

e. Indicator method - resonance upwards;

f. Momentum method - long columns are effective;

g. Moving average method - do not break and return;

h. Chan (Zen) theory - three buys and three sells.


9. General rules for placing orders

Start the move (breakthrough; pullback; continuation); follow three steps (three notes; three pillars; three waves).


10. Trading layout

Clarify the swing (two points connected; fan forming a ladder; big waves wrapping small waves); intervene early (first entry within three levels; be cautious in the lower half); execute wave by wave (big five waves; small three waves; adjustment waves); continuously place orders (keep up; fully execute); be cautious in counter-trend trades (random, avoid taking the lead, preferable to do less or not at all).


(3) Summary and conclusion

Theoretical five systems; six technical tools (eight taboos, eight methods, three exceptions); three strategic treasures; eight-character mantra for tactics (core skills: four essentials, four actions, two principles, five layouts, five line patterns).



Focus@趋势狂人元寶 , bringing you more practical knowledge, allowing you to roam freely in bull and bear markets

If you have any questions, you can post to discuss