$BEAT The most stable way to play contracts in the cryptocurrency circle
$RAVE Choose good coins and be a good person. As a leveraged trader, volatility can be amplified by leverage multiples; the primary consideration during trading is not volatility but certainty.
In a rising market, go long on strong coins; conversely, in a falling market, go short on the weakest coins.
For example, when a new quarter begins, the strongest coins are eos and eth; during a pullback, these two coins are the first choice for going long, and when the market is falling, bitcoin is the first choice for going short. Even if the final result is that mainstream coins fall more than bitcoin, just shorting or chasing bitcoin can greatly avoid the risk of violent pullbacks.
Most people in the cryptocurrency circle are short-term traders; during trading, it's hard to have the opportunity to hold to the ideal closing price, and they are not very proficient in position control, nor can they rely on fluctuations to average out the price. Given this situation, for most traders, a good opening price outweighs everything.
Once there is a profit, take part of it first to secure gains, and set the remaining part to stop-loss at the cost price. 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 line with the trend, entry points:
1. New breakout point of the trend;
2. Breakout point of a consolidation trend towards a certain direction;
3. Pullback point in an uptrend or rebound point in a downtrend.
(3) Positions that follow the trend will bring you substantial profits; do not exit early;
(4) If the entry point aligns with the larger trend and the paper profit proves you are correct, you can use a pyramid-style technique to scale in; (Reference: Two)
(5) Keep your position unchanged until the trend reverses and you close the position.
(6) If the market trend is opposite to the entry, stop-loss 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 amounts to make a large sum; compound interest is king. If you deviate from the cost, you must resolutely avoid turning back to losses. If you have profits, be sure to secure part of it to prevent it from being wasted. In summary, it can be stated as: be bold when you are making profits, and let the remaining part return at the original price.
