#合约交易 Methods to Prevent Liquidation:
Contract trading carries high risks. To avoid liquidation, attention must be paid from multiple aspects. Here are some methods:
Reasonably control position #BTC #ETH
- Light position operation: Avoid excessive leverage; risks are high with leverage above 10 times. It is recommended to initially use 2-5 times leverage and keep the position controlled within 20%-30% of total funds. For example, with 100,000 yuan of funds, the position should occupy 20,000-30,000 yuan.
- Build positions in batches: Do not open a full position at once; you can first establish a bottom position of 20%, and add to the position when the market is favorable, but the total position should not exceed 50%. For example, buy with a 20% position first, and after confirming an upward trend, add a 30% position.
Strictly set stop-loss and take-profit
- Set stop-loss: Set the stop-loss level according to risk tolerance; generally, for contracts with large fluctuations, a stop-loss of 3%-5% is set. For instance, if the purchase price is 1,000 yuan, the stop-loss level can be set at 970-950 yuan.
- Timely take-profit: Take profit once the expected profit target is reached. Cashing in is safe; for instance, close the position if profits reach 10%-15%.
Choose suitable trading varieties and times
- Choose trading variety: Select mainstream contracts with good liquidity and moderate volatility. Contracts like Bitcoin and Ethereum are more stable than small coins, with better depth and lower slippage risk.
- Choose trading time: Avoid periods of extreme volatility, such as during major policy announcements or extreme market conditions when fluctuations are large and risks are high. Trade during relatively stable periods.
Enhance risk awareness and market analysis
- Enhance risk awareness: Do not blindly follow trends; understand that contracts carry high risks, and both losses and profits can be magnified. Do not invest living expenses.
- In-depth market analysis: Use fundamental and technical analysis, pay attention to macroeconomics and project fundamentals, and use indicators like moving averages and MACD to assist in judging trends, rather than trading based on feelings.
Proper fund management and mindset adjustment
- Fund management: Set aside dedicated trading funds without reallocating them. Reserve some funds to cope with adverse situations, ensuring sustainable trading.
- Mindset adjustment: Remain calm and rational; do not rush to recover losses, do not be greedy when in profit, trade according to plan, and do not be swayed by emotions.
