Teach you how to trade from multiple dimensions - the five-sided rule (original by Sange)
This article is a purely technical sharing of my own original post. It is the result of my 10 years of experience in the financial and securities markets, including but not limited to (US Nasdaq, Hong Kong Hang Seng, Shanghai and Shenzhen A, and today’s cryptocurrency industry). A trading rule accumulated through actual combat is called the five-sided rule.
As the name suggests, the five sides include the macro side, the technical side, the news side and the data side, the emotional side, and the copycat side.
The five-sided rule applies to the cryptocurrency industry, including futures contract trends, short- and medium-term day trading, and spot trading of hot altcoins. Below I will conduct a detailed analysis of the Five Faces Rule. If you resonate with it, thank you for your likes and collection!
Many people always get liquidated when playing contracts. Today, let's talk about how to play contracts.
1. Fund management must be passed. With a leverage of 0-100x, short-term losses are inevitable. The single risk should generally not exceed 5%-8%, and aggressive players should be 8%~10%. If the risk exceeds 10%~15%, the retracement in the unfavorable period will reach 70%, and the average person's mentality collapse point is about 50%. Fund management must be strictly implemented. Many people like to do 5x and 10x, and the level is above 4h. The stop loss of the level above 4h is 5%-15% per share, and the single risk has reached 25%. Doing so is undoubtedly like seeking death. In order to ensure the risk level and at the same time ensure the opening of high leverage, the level must be lowered to 1 hour, 15 minutes, or 5 minutes. The smaller the level, the fewer players can control it. A share of 1h-4h is the limit of the control of ordinary players, 5-15 minutes is what professional players can control, and 1 minute level is also beyond the control of ordinary professional players.
2. The trading system must be passed. To hone the trading system, long-term trading experience must be accumulated. The sign of successful running-in is not to do anything outside the model, and the conditions are clearly defined. In this process, it is necessary to continuously select generations and experience the baptism of the mainstream of the bull market. Because it is leveraged trading, t+0, and frequent trading, you need to prepare 90%X9 tuition fees. Many people come up with tens of thousands to play. You must understand one thing. No matter how much starting capital is, it is only enough to pay tuition once, and there are 8 more times later. Therefore, you must do it with small funds, hundreds or thousands of dollars, and don’t add funds when you make a profit, and withdraw funds when you make a profit. Continue to do it with small funds. At the beginning, the system and operation will not be particularly proficient, and many mistakes and unnecessary actions cannot be avoided. Many posts say how much they lost. In my opinion, such losses are meaningless. They just paid tuition once, and they didn’t touch the door. The learning curve has not been raised, which is no different from gambling.
3. Execution must be passed. Similar to 519, if you bet on the wrong direction once, you will be doomed. No matter how much money you made before, it will be equal to 0 if you don’t get through such a black swan. Strict stop loss is not mentioned. More liquidations are caused by bottom-fishing against the trend, similar to the recent luna9, which was also bottom-fishing against the trend. Don’t bet on low-probability events, and don’t dream of achieving success in one battle.
4. Time and experience accumulation.In a bull-bear market, you need to be familiar with the characteristics of the market conditions of different varieties at different stages and adjust your strategy according to the market conditions.
For small investors, the time they spend in this market is very limited, so it is certainly difficult to intervene in such a professional market. There are several suggestions. 1. Trial and error with small funds. 2. Put the leverage below 2/3 times, make fund planning based on the premise of large cycles, and consider rolling positions. 3. Do 1h, 4h or daily level large cycles. 4. If the conditions are insufficient, do not do short-term contracts unless you are a professional, and do not do it unless you are desperate. 5. If you have not completed the previous 4 items, do not invest more than 20,000 yuan, and only use the pocket money that you don’t feel bad about losing money.
In fact, in terms of difficulty, contracts are much more cruel than moving bricks and spot in terms of results. Don’t look at the few people at the top of the pyramid. They are all the thousands of gold and horse bones that deceive retail investors into entering the market. Everyone knows that one general’s success is the result of thousands of bones. I hope there will be less tragedy and more reason. Keep a light position, follow the trend, and stop loss. The above suggestions hope to save your wallet and prevent you from falling into the quagmire of the casino. Why do you have to do contracts with 2,000 yuan in your pocket? You can only make 20,000 yuan if you make ten times a year. It is not better to set up a stall for a month. Many people get stuck in a dead end and have to do it. The opportunity cost is much higher than other ways. Do it according to your ability.