1. Analyze the Market
In the cryptocurrency market, there are unidirectional trends and volatile trends. Generally, unidirectional trends only occur for a period, where the cryptocurrency market shows a one-sided rise or fall. This type of market is best for trading; investors just need to buy on dips or sell on highs. In a directionless market, it is not suitable for medium to long-term trading; only short-term trading is appropriate, high selling and low buying, and exit when there is profit.
2. Analyze Trends
The second step is to look at the trend. You can refer to daily, weekly, or monthly candlestick charts and analyze long-term factors affecting mainstream cryptocurrencies to determine whether the mainstream coins will rise or fall over a period. If you enter the market without first examining the trend, blindly chasing gains and cutting losses will only lead to a miserable exit. After determining the trend, you can then set rough operational goals. It can be said that correctly judging the trend is already half the battle.
3. Look for Good Entry Points
Even when the trend looks good, do not rashly enter the market. You should first select good entry points; otherwise, it is easy to be stopped out by market fluctuations. For example, in the recent cryptocurrency market, there has been a continued upward trend, yet many long traders still lost money. Why? Because they did not choose good entry points.
4. Choose the Right Timing
In the cryptocurrency market, there are certain rules. Generally, from January to May each year is a bullish season, so you can buy on dips. From May to September, the market fluctuates and trends downward, but there can also be certain gains, so high selling and low buying are key. In the second half of the year, there are usually significant drops or surges, making it the most profitable period.
5. Control Your Position
Only by reasonably controlling your positions can you have a stable profit opportunity; otherwise, your account will only lead to failure. Generally, invest 10% of your funds in the market. If your account has only $10,000, then each trade you make is $1,000, regardless of whether it's long or short. In favorable market conditions, if your trades are profitable, the stop-loss should be set at the opening price. Do not take heavy positions regardless of confidence in the market. If your trade is at a loss, do not average down unless you have hundreds of billions in capital to support it. Similarly, for a $5,000 account, it is best to trade in $500 increments.
BTC Perpetual Contract Position Management and Leverage Techniques
【Position Management】
Position management in contract trading is very important. For example, if your account has $10,000, the margin for each trade should be between 5-10%, which is $500-$1,000, or 50-100 contracts. These 50-100 contracts can be entered in 2 or 3 stages at different price points.
【Supplementary Trading Techniques】
If the leverage is the same for supplementary trading, the next step is to adjust the position, with a ratio of 1:2:3. For example, the first order is 10 contracts, the second is 20 contracts, and the third is 30 contracts. If the initial leverage is 20x, the second order should have the same position at 50x, and the third order at 100x, with a maximum of three orders. The total position of these three orders should be one-tenth of your total position. Adjust leverage and position flexibly to quickly recover losses or exit with profits!
【Leverage Techniques】
1. The size of leverage should be determined based on market conditions. In a significant market, use long positions with small leverage to withstand risks.
2. Enter and exit quickly with high leverage for fast returns. Generally, it is recommended to take profits around 30-50% because market changes are rapid, and we must learn to respect the market and know when to stop.
【Warm Reminder】Adjust your attitude and study seriously. Build positions scientifically and operate rigorously. Control your position, adjust margin at the first moment of opening a position, and set stop-loss and take-profit. Do not gamble or be greedy, enter and exit quickly, operate flexibly, and take profits in a timely manner. No anti-trend positions are allowed, no all-in bets. Investment has risks, and caution is needed when entering the market; you bear the risk yourself.#名人MEME热潮 $XRP $ETH
