Before buying the dip, first think clearly: what logic are you using to buy, and how long do you plan to hold it?
Old Qin only chooses the top two spot assets for buying the dip, based on the overall trend still maintaining an upward direction, incrementally placing buy orders at n*1.5 times the position size at far prices, betting that the market will continue to rise in the second half of the year.
Even if it really breaks below my key support level, I'm not afraid, after all, the cost has been averaged down, and I still have reserve funds, so when the market rebounds, I can exit completely.
If you are trading contracts and just want to speculate on a short-term rebound, remember not to get confused: just because the 1-minute chart has risen, don’t assume that the 15-minute or 1-hour charts will also rise. The biggest taboo in short-term trading is guessing across different time frames, which can wipe out your capital in an instant.
When I trade short-term long positions, I generally operate like this: when it rises to the same-level resistance, I sell at least 30% of my position to secure profits.
Then I set a trailing stop loss on the lower time frame (which means adjusting the stop loss level as the price rises), this is the first layer of insurance;
The second layer is to set a stop loss for the entire position directly at the cost price, to prevent sudden price surges or drops, as it would be disastrous if you suffer losses without triggering the trailing stop.
— Although such situations are rare, in terms of risk, it’s better to be safe than sorry; you must think of strategies in advance. These two methods can be used simultaneously.
