Main tips:
1. Transferring funds
Transfer USDT to the exchange, with a total limit of 300U. How much is 300U? Personally speaking, for example, my spot stock price is 100,000U per share, which is a large position. Small positions start at 5,000U. I use 300U to play a hundred times. You can see this ratio for yourself. Generally speaking, you can also use 1% of the total funds. As a rule, the amount shall not exceed 300U. One more thing here: I actually don’t recommend 100-fold contracts, as the risk is too high and the price-performance ratio is low. Either it is below 5X, a dead leverage for a large position, or it is 50-100X, a very small position with a small gain - it is best to only take the latter option, because the contract will inevitably be liquidated, and the same is true for low multiples, and if it is a hundred times Either liquidate your position by 300U, or make a huge profit. Generally speaking, the profit-loss ratio is huge.
2. Starting skills
Assume that BTC is currently at 16500U and has been fluctuating for a long time. I am still bearish and looking forward to a big market trend. It is recommended to start with 10U and 100X.
After opening, just ignore the price and fall. Unless the position is liquidated, just watch the show without moving and stay calm - it is equivalent to choosing a direction before you open. In the short term, you should be more than 70% sure about this choice, and it is expected that It's best when big market trends occur.
Big market trends generally appear after the K-line goes flat, as shown below:
Market trends after 312
As shown in the picture above, in the market after 312, during each shock, after the K-line becomes flat, there will eventually be a big upward or downward market. At this time, it will be more helpful to find opportunities to intervene. As for how to find opportunities, you can refer to some tutorials and observe the emergence of specific K-line forms, such as 2B structure, etc. Many times in normal times, when opening a position, if you feel that the current position is not ideal enough for various reasons, you can lower the starting position, such as starting at 1U. On the other hand, if you are particularly confident about a certain position, you can increase it slightly.
But you need to convert it, 300U, if you use 10U to open 100X, that is, the total position is 1000U, and your principal is 300U, which is equivalent to more than 3 times, the risk is already relatively high, not recommended! Because our starting position is The key is to survive the shock and not be greedy!
3. Tips for adding positions
For example, if the market does fall below 16,000, and there is a huge negative, and if you combine the trading volume, MACD and other observations, you feel that there is a high chance of a big drop, then you should consider adding positions, and use profits to add positions. In fact, this is commonly known as Rolling positions is almost the key to using small capital to make big gains, but at the same time, rolling positions is
This is a technical job, and this is where the most people liquidate their positions. Let’s talk about the method: At this time, the market has fallen, and my order has already made a profit. 300U has become 400U (for example, I didn’t calculate the specific amount). Then before I increase the position at this time, I observe that my profit has already been 100U, then, I suggest setting a stop loss after adding a position. Stop loss means a loss of 100U, and ultimately there is still 300U of principal.
Because we have already made money at this time, and the direction is probably right, there is no reason to take risks with the principal. At this time, you should note that if you set a stop loss of 100U, it actually means that your original position was a principal of 300U, and now the profit is 100U. If the position is increased, it may be stopped at any time.
Because, at this time, you can actually proceed step by step. The first step is to set a stop loss of 100U. Don't rush to increase it first. When the profit expands, you can then increase it a little bit. It is best to increase it little by little. It is best to suppress the shock.
The secret here is not to be greedy. If you are not sure, don’t even add. A 100-fold contract is really tough to make money, and the same is true for losses. There is also a timing issue that requires special attention when adding positions. It is best to add positions during a small rebound during a decline, or during a small correction during an increase. Here, the 2B structure is particularly useful, and it is worth learning.
It is best to only add two or three times to a position, and then watch the market run - the more you add, the more dangerous it will be during a pullback.
4. Other supplements
Short-term high multiples are the correct way to play contracts, with high risks but higher returns - note, I have to emphasize again, I am not asking you to play with high multiples, especially for novices, don't touch it, because you don't understand, I am just sharing My thoughts and methods.
1. To form your own system
In trading systems, there is no holy grail.
We can see that short-term masters such as Ram Williams and CIS have very good long-term actual combat records. The former’s books have also sold a lot, but I have not seen the second Williams because of everyone’s mentality and system. With slight changes, the results of the transaction will vary greatly. Therefore, if you want to wear a crown, you must bear its weight. Form your own trading system, enjoy its benefits, accept its shortcomings, constantly summarize the market rules, and constantly make repairs to achieve success.
2. Understand the profit-loss ratio
In the trading system, the profit-loss ratio is the most important content. The real profit formula is: profit profit-loss loss-handling fee>0. There are three basic modes in trading, the first two are:
One is high profit-loss ratio + low winning rate + low frequency. Trend following, medium and long term. For example, Feizhai Bitcoin's 100,000 principal has been able to achieve a small goal in the 2021 bull market. In fact, he is also a trend trader.
The second is low profit-loss ratio + high winning rate + high frequency. In the short-term master mode, the profit-loss ratio is often even 1:1, which is very poor. Only some legends should be able to do it. I feel that I am not good at it. There is also a group of people in this industry who seem to quantify the exchange fee spreads that are frequently used by exchanges. They are relatively high-end and generally do not teach others. Every exchange will ban the account of every exchange they find. Ordinary users do not need to understand.
The third is the terrifying profit-loss ratio + winning rate + extremely low frequency. I talked about a thousand times, which can be regarded as a classification of my own, called the third category, which is also unique to the currency circle:
For an order of 300U, the maximum loss I can accept is 300U. According to my ordering method above, I can open it many times, but as long as I win any one time, my profit and loss ratio will be terrible. For example, the order of 46U will go all the way to 25,000U. , if the website does not cause trouble, it will later reach 50,000U, which is nearly 1,000 times. Under this kind of profit and loss, plus only placing orders at key positions, it is okay if the winning rate is less than 10% - you think it is less than 10% Is the winning rate easy? It is impossible to only have a 10% winning rate with your eyes closed.
Big data shows that the winning rate of retail investors is about 33%.
In fact, from a comprehensive strategic and tactical perspective, a system with a high winning rate and low profit-loss ratio, a system with a low winning rate and a high profit-loss ratio, and my system can all be successful. Therefore, there is no need to dogmatically believe that there is only one path with low winning rate and high profit-loss ratio. The profit-loss ratio must be above 3:1. It is possible to create a successful trading system with a 10% winning rate or a 90% winning rate.
Since both high and low winning rates are possible to succeed, there is no need to worry about whether to be long-term or short-term, or even a mixture of the two. The important thing is to find a trading method that suits you when your trading strategies and tactics are well matched.
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