Yuanbao has been fighting for years on the front lines of (futures, spot, stocks, and cryptocurrency). The following is a rough summary of the contract trading teaching outline by Yuanbao. Personal views, please forgive if displeased.
(1) Basic concepts.
1. What is contract trading?
One of the forms of blockchain digital currency trading, in June 2013, the 796 exchange was the first in the Bitcoin industry to develop the Bitcoin weekly delivery standard futures - T+0 two-way trading virtual goods mortgage contract (contract trading). The emergence of contract trading ended the previous history where Bitcoin could not be shorted, opening the curtain to the prosperous development of the Bitcoin derivatives market.
2. What is it used for?
Basic skills for the four major financial management areas in the new era (deposits, insurance, securities, trust products); one of the three major industries of wealth tycoons 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 (prerequisite); 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 types of tools: (candlestick, indicators, patterns, trends, waves, momentum - trading volume).
d, Fundamental management (golden finance, coin world);
e, Trading execution;
Trading conditions - four 'have's: (have range; have momentum; have direction; have market points) missing any one makes it a non-trading market;
Trading principles - four actions: (making waves; making expectations; making methods; making a series) - monitoring - result evaluation;
2. Develop trading principles and discipline.
Principles; single cryptocurrency or few varieties of contracts - BTC, ETH, etc., choose in order, prioritize trend positions, 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 good diary and conduct regular analysis.
Winning rate; profit and loss ratio.
4. Clarify the primary characteristic of the trading market: uncertainty.
Intraday short-term trading: daily close line 4 hours 1 hour, long cycle looks at the trend; 30 minutes 15 minutes cycle looks at the range; 5 minutes short cycle looks for reversal tops and bottoms; 1-minute line looks for entry points.
5. Master the three treasures of trading.
a, The market determines everything (candlestick chart 'K-line' is the primary basis).
b, Do 'tracking', not predicting (can have different expectation charts).
c, 'Capital preservation' is the fundamental goal (principal is the life-and-death boundary of market trading, profit and loss are natural).
6. Trading skills - eight-character mantra: follow the trend randomly, with moderation.
a, Direction; following the trend is king.
b, Time and space; the range as a guide - trading range and observation range.
c, Position; positions should be moderate, wide fluctuations follow the 123 rule; unilateral markets can jump levels to continue positions; exceptions for emotional markets use light positions.
d, Profit and loss; profit and loss must be moderate - profit and loss ratio ≥ 1; short-term trading looks at the winning rate; technical profit and loss points (support and resistance); psychological profit and loss points.
7. Main reasons for losses (eight taboos).
a, Against the trend (reverse position); b, Heavy position (over 40%); c, Emotion (acting out); d, Holding position (no stop loss); e, Chasing highs and lows (buy high, sell low); f, Stubbornness (arrogance); g, Not correcting mistakes (sticking to the wrong direction); h, Inconsistency between knowledge and action (not operating according to one's trading system).
8. Brief introduction to conventional methods (eight methods).
a, Candlestick method - right-side trading;
b, Trend method - entering along the trend line;
c, Pattern method - two-step tracking;
d, Wave method - enter at the second wave top and bottom;
e, Indicator method - resonating upwards;
f, Momentum method - longer columns work;
g, Moving average method - no break and return;
h, Chan (Zen) theory - three buys and three sells.
9. General principles of trading.
Initiate moves (breakthrough; retracement; continuation); follow the three steps (three orders; three columns; three waves).
10. Trading layout.
Clarify the wave (two points connected; fan forms a ladder; large wave traps small waves); intervene early (first entry in three ladders; act cautiously in the lower half); execute wave division (large five waves; small three waves; adjustment waves); continuously place orders (stay close; make thorough trades); be cautious with counter-trades (random, avoid declaring victory while in a weak position, better to trade less or not at all).
(3) Summary and synthesis.
Five theoretical systems; six technical tools (eight taboos, eight methods, three exceptions); three strategic treasures; eight tactical mantras (core techniques: four 'have's, four 'do's, two principles, five layouts, five line spectra).
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If there is anything you don't understand, feel free to discuss.