In crypto trading, I took a big fall: my personal experience!
trading is really exciting and thrilling. Although I've been in the crypto space for a long time and have experienced many ups and downs, I have also lost money step by step.
How did I lose so much? I usually trade quite carefully and manage risks well, but that time, a few mistakes combined completely ruined me.
First, I invested in a coin with extremely high volatility, and it crashed without any preparation.
Secondly, I used leverage.
Using it too aggressively, what could have been a small loss turned into a significant loss due to leverage.
Thirdly, those big investors, the so-called 'whales', when they move, the price drops dramatically; I simply can't withstand it.
In the end, I panicked and wanted to quickly recover my losses, but the more anxious I became, the more mistakes I made, and my trading turned into a mess.
This lesson, I have learned well:
Stop-losses must be set properly; if I had set a stop-loss earlier, I wouldn't have lost so much!
Leverage must be used carefully; if used well, it can make money, but if used poorly, it can liquidate you in an instant.
Market trends and the movements of those 'whales' must be monitored at all times; the market changes instantly, and you must adapt quickly.
When trading, emotions must be controlled well; a moment of impulse can lead to wrong decisions and big losses.
Although I fell this time, I'm still not convinced; I must make a comeback. In the future, I will trade more carefully and cautiously, only doing trades I am confident in, striving to improve the success rate.
When trading, risk management must come first; don't let emotions lead you!
How to trade altcoins with contracts.
100 dollars with 3x leverage.
To go long, a drop of more than 30% is needed to get liquidated.
Generally, when an entry signal appears, for example (dragonfly doji W, bottom divergence W).
There are very few coins that continue to drop by more than 30%, but that doesn't mean they won't drop by 20%, 10%, or 5%.
However, all of this is within the expected fluctuations.
Therefore, for popular altcoins, use 100 dollars with 3x leverage to go long.
For these popular altcoins
After going to the exchange, after a brief washout,
Many can be pulled up by 1-2-3 times.
Never underestimate the charm of 100 dollars with 3x leverage.
If the process maintains a 3x rolling position
That can achieve results of 3000-5000-10000 dollars.
On the contrary, if there is a historic crash, dropping more than 30%.
If you get liquidated, your maximum risk is only 100 dollars.
Moreover, during this process, you can operate flexibly.
For example, gradually transfer out floating profits until all the principal is transferred out.
In this way, you're left with pure profit speculation on rolling positions.
You will have no psychological pressure.
So, the entire rolling position process is as follows.
1. Recent popular altcoins.
2. Identify entry signals.
3. Long with 100 dollars and 3x leverage.
If the price surges, increase your position with floating profits.
If the price drops, generally a 5%, 10%, or 20% drop doesn't need to be paid attention to; it needs to drop more than 30% to get liquidated.
As mentioned at the beginning, generally enter based on signals; very few continue to drop by 30%.
However, that doesn't mean it won't drop by 5%-10%-20%.
This is the logic of using 100 dollars with 3x leverage for rolling positions.
However, I found that some classmates started to mess around.
Treat these altcoins like big coins.
It's often 10x, 20x betting.
A slight drop can lead to a 'glass heart' situation.
What to do? What to do? What to do?
Actually, this is quite foolish.
Rolling position base orders are not those conventional big coin orders.
The strategy for play is completely different.
You cannot apply the thinking used for big coins to these popular new coins.
Because they are inherently volatile.
And you want it to surge but are unwilling to accept its volatility.
It's like wanting to find a girlfriend in a nightclub but not wanting her to go to the nightclub.
Where in the world can there be such good luck?
So, you must remember!
This is a rolling position base order, which doesn't require large funds and high leverage.
Just go long with 100 dollars and 3x leverage.
If the price surges, increase your position with floating profits.
If there's a crash, the loss is 100 dollars (needs to drop by 30%).
Of course, there is another option, which is to further reduce the funds.
For example, we have 100 dollars with 3x leverage.
You can use 30-50 dollars with 3x leverage.
And for those who frequently bet 10-20x, stop trading as soon as possible!
This is not a big coin; these are garbage altcoins! Suitable for small bets and rolling positions.
Not suitable for large funds to come in for investment.
