Many people lose money playing contracts, so how can one make a profit?
Only focus on the two strongest coins (the first and second). (BTC/ETH)
Mainly look at the 4-hour level chart: if there is a significant moving average group suppressing above (for example, MA60 keeps pushing the price down), take the opportunity to short in batches; if there is a support level of the same or larger level below, then long in batches near the support level.
Set the stop-loss like this: for example, if the support level is at 2220, and it drops to 2210 and then bounces back, place the stop-loss just below 2210 (around 2100).
There are principles for stop-loss and positions: if total capital loses 15%-20%, try not to open new positions that day; single stop-loss should be controlled within 10%, with a maximum of two trades a day, and each time the position should be the same. Try to enter the market in batches, don’t invest all your money at once.
Follow the trend: if the overall direction is to short, then short more; if the overall direction is to long, then long more. When the market is good, chase popular coins. Control the profit-loss ratio, roughly around 4:1. Summarize and review every day.
When encountering a market crash: wait to short, enter the market in batches when there’s a spike; if there’s no opportunity, keep waiting to short, not losing money at this time is equivalent to making money. Regarding guaranteed profit stop-loss: if the position opened that day hasn’t hit the stop-loss and the same level K-line pattern hasn’t been broken, there’s no need to set a guaranteed profit stop-loss.
Remember the mindset and taboos: don’t think about going all in to get rich, only trade what you understand, learn to short, and don’t force long positions. Avoid overnight positions, and try not to open positions on weekends without market clarity. After being stopped out, don’t get emotional, keep a good mindset, and don’t continue to operate. Be sure to control your positions, don’t over-leverage or go all in, and must set stop-loss and take-profit levels properly.
