$ALLO Family, the most stable play in the cryptocurrency contract circle
Choose the right coins and be a good person. As a leveraged trader, volatility can be amplified by leverage, and during the trading process, the primary consideration should not be volatility but certainty.
In a bull market, go long on strong coins; conversely, in a bear market, go short on the weakest coins.
For example, when a new quarter just begins, the strongest uptrends are eos and eth, and the first choice for going long during a pullback is these two coins. In a downturn, the first choice for shorting is Bitcoin. Even if the final result is that mainstream coins drop more than Bitcoin, just shorting or chasing Bitcoin can greatly avoid the risk of a violent rebound.
Most people in the cryptocurrency circle are short-term traders, and it's difficult to hold on to an ideal closing point when trading. They also may not be very skilled at position control and can't rely on oscillating to average prices. Given this situation, for most traders, a good entry price outweighs everything.
Once there is profit, take some off the table to secure gains, and set a stop loss at the cost price for the remaining portion. This is something I have always emphasized.
The essence of contract trading strategy
(1) Identify the main trend and trade in the direction of the main trend; otherwise, do not enter the market.
(2) If you are trading in the direction of the trend, entry points:
1. New breakout points of the trend;
2. Breakout points from sideways consolidation trending in a certain direction;
3. Pullback points in an uptrend or rebound points in a downtrend.
(3) Positions that follow the trend will bring you substantial profits; do not exit early;
(4) If the entry aligns with the larger trend and paper profits prove you are right, you can use a pyramid-style technique to increase your position; (reference two)
(5) Keep the position unchanged until the trend reverses and close the position.
(6) If the market trend is contrary to your entry, cut losses and run.
In addition to adhering to the above strategies, remember three qualities: discipline, discipline, and discipline!
The way of trading is to accumulate small gains, with compound interest being king. If you deviate from the cost, you must not turn back into a loss. If there is a profit, be sure to take some off the table to prevent working hard for nothing. In summary: Be bold when there's profit, and let the rest go at the original price.
