The contract market is highly volatile, which can easily lead to the impulse to "make a trade." However, looking back, I find that many losses actually come from overtrading. There will always be opportunities in the market, but that doesn't mean you need to participate in every opportunity.
My trading rules:
1. Trade after calm analysis: Only take action when it is clear that the market has a definite trend or signal.
2. Avoid chasing highs and cutting lows: Short-term fluctuations in the market can easily trap you into chasing gains and cutting losses. When trading contracts, do not blindly follow the crowd; instead, make your own analysis to determine whether to enter the market.#BNB
I have experienced several significant losses, and during those times, my biggest enemy was not the market, but myself. When I blindly chased after rising prices and sold at falling prices, unable to control my emotions, I truly realized the importance of psychological quality.
Maintain a calm mindset:
1. Don't fear missing out: The market presents opportunities every day; there's no need to feel anxious about a missed chance. What’s more important is whether you can stick to your strategy.
2. Learn to accept losses: Everyone will experience losses at some point; learn to accept them and draw lessons from failures to gradually avoid repeating the same mistakes.
3. Avoid greed: This is a trap I have personally experienced. Whenever I am in profit, I always think, "let's make a little more," and the result is often that I become too greedy and end up with losses. #BNB
In the contract market, going with the trend is easier to make money than going against it. My trading strategy is very simple; I follow the mainstream market trend about 80% of the time. #BNB $BNB
Several tips for trend trading:
1. Look at the big picture: First, check the trend of the larger time frames. If the 1-hour, 4-hour, and daily charts all show an uptrend, I usually choose to go long.
2. Volatility confirmation: Short-term volatility may tempt you to make counter-trades. However, in the long run, the market will always return to the main trend direction. Therefore, I try to avoid going short during pullbacks.
Hello everyone, as someone who has been in the contract market for two years, today I want to share some of my contract trading experiences with you. I hope these insights can help those who are just starting out or feeling confused. The contract market is a place of intense volatility, suitable for investors who enjoy challenges and can bear risks. To achieve stable profits in this market, it requires not only luck but also strategy and mindset management. 1. Stop Loss/Take Profit: I usually set my stop loss and take profit points when opening a position, which helps avoid decision-making errors caused by losing control of emotions. 2. Reasonable Use of Leverage: Leverage can amplify profits, but it also amplifies risks. I generally choose a leverage of 2-5 times, and only opt for higher leverage when I am very confident. 3. Position Control: The proportion of funds used in each trade should not exceed 10% of the total account balance. This practice helps to avoid liquidation in case of consecutive losses.#BinanceTurns8
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