If you are in a loss-making state when doing a contract, then you should read the following content carefully. Please be sure to abide by the following points to ensure that you can achieve a profit.
1. Learn to stop profit and stop loss
This has been said many times. The market is changing rapidly and you must learn it. It is neither difficult nor easy. Taking profit controls your own greed. A coin will not rise endlessly or fall continuously. There are cycles. Therefore, taking profit becomes particularly important. Don’t say that you closed your position too early and missed out on the subsequent profits. You must remember that you can never make all the money in the currency circle, but you can lose all the money in your account.
Stop loss means giving up sunk costs, which is also very difficult. Do you think that if you hold on to the order, the situation will reverse? Don't think so. If you are wrong, you are wrong. You must admit your mistakes. You must stand at attention when you are beaten. Although it hurts to cut off your arm to survive, it can really save your life.
One more thing, when placing an order, make sure there is enough tolerance. If the direction is correct but your volatility tolerance is too low, you may easily be thrown off the bus.
2. Don’t make orders frequently
Big taboo, do you always think about taking both long and short positions? Wake up, not many people can do it, be content if you can take one side, another point is the handling fee, low multiples are ok, but high multiples are uncomfortable, you lose 1~2 points of profit as soon as you open an order, you must ensure that this order can make money, otherwise this order is meaningless.
3. Learn to short
When you don't understand the market, don't open an order. At this time, you will say that it is uncomfortable to miss the market. Then I have to ask you, is it more uncomfortable to miss the market or to suffer losses? Opening an order without understanding the market is no different from gambling.
The key to trading is a probabilistic advantage. No one can accurately predict whether the price will rise or fall. The market changes too quickly, so we can only say that there is a high probability of rising or falling.
As an aside, the top two exchanges now have copy trading areas. If you are not sure about placing orders yourself and always misjudge the direction, you can try to go to the copy trading area. It is also important to choose the right trader.
4. Step by step
Don't think of becoming fat in one bite. This kind of thing is a gradual process. The cryptocurrency world will not make you rich overnight. For example, if you use 100 yuan as capital and open a 10-fold long position, your holding will be 1,000. You will make 10 yuan if the price goes up by one point, and 20 yuan if it goes up by two points, which is enough for breakfast. Now, working in a factory for 15 yuan an hour, and opening three or four orders a day, with a winning rate of 60% to 70%, is not as comfortable as working in a factory.
5. Don’t bet at high odds
Don't go all in at a high multiple, as something unexpected may happen and you'll lose everything. If the stock price was rising as expected, it may reverse immediately due to some breaking news, and you didn't set a stop loss, then you're doomed.
Stay rational and don't get carried away, especially after a margin call (this is the consequence of not setting a stop loss. A margin call leads to a series of chain reactions, so stop loss becomes particularly important)
At this time, if you really want to get your money back, you must be rational. EUI has a contract cooling-off period. If you are afraid that you can't control yourself, you can turn it on.
Don’t think that you’ve missed out on this wave of market by opening the contract cooling-off period. There is no shortage of market conditions and opportunities in the cryptocurrency world. They will always be there, at least for the next 10 to 20 years.
