Success in Crypto options trading requires valuable experience. Here are some important lessons:
1. The more capital you have, the greater the risk
In the early days, throwing a lot of money into options trading could be a disaster. This bottomless pit seems to never fill up, and the risk increases with it.
2. Avoid the trap of adding positions to floating profits
It is usually foolish to adopt a strategy of adding to positions with floating profits in the medium term. Doing so will easily lead to adding more and more positions, eventually exhausting the source of funds and making it impossible for traders to cope with market fluctuations. This is like losing the backup team members and the strength of the main team is not enough to be competent.
3. Opportunities when there is nowhere else to go
When you are at your wits' end, you are also at the point of having a chance to be reborn. Options traders tend to reflect and summarize their losses, but since they still have some capital, they may rush to seek profits and enter the market, which often backfires.
My lessons learned are:
Analyze and find out the reasons for previous losses, reflect and adopt different strategies. Otherwise, the losses will never end.
Establish a fixed trading model, follow market trends, and trade according to available funds. Always maintain consistent position management principles and stop losses in time.
Only trade when clear trading signals appear, and don't enter the market blindly because you are eager to make a profit. This takes time to cultivate, but once you master it, you will feel at ease.
As net funds increase, you can gradually increase your positions and gradually increase your principal, but the premise is that it is based on stable profits.
PS: The most important thing is actual practice, but novices are not encouraged to engage in high-frequency trading
