CoinEx｜Order Billing Suggestions for Contract Traders

The huge wealth effect of the digital currency trading market has attracted a large influx of investors. Behind the high returns, many people forget the existence of risks. Unlike the stock market, the trading of digital currency has no limit on the rise and fall, and it is a market that can be traded 24 hours a day, which also makes skyrocketing and falling into the norm, and opportunities and risks coexist.

Among them, as a financial derivative contract, the margin system amplifies the leverage of the contract. Compared with the spot, the risk factor of the contract is higher, but at the same time, it has more attractive returns. But there are countless examples that warn us that if we trade on the basis of feeling, we will only become victims on the trading floor. If you want to improve the winning rate of contract trading, you must have a set of billing strategies that apply to you. For this reason, this article will introduce some highly applicable billing suggestions from three stages: before the order, when the order is opened, and after the order is opened.

Before Billing: Do a Good Job in Fund Management

It is guaranteed that there are not only coins, but also USDT in the account, and there must be prepared funds outside the market to deal with extreme market conditions. The funds in the contract should preferably not exceed 50% of all personal funds, and the funds for each transaction should not exceed 10% of the contract account funds. This approach can effectively reduce trading risks, and even in the face of some extreme market conditions, there are sufficient funds to operate.

When billing:

1. Control the number of transactions: Frequent contract transactions not only easily affect the mentality and reduce the transaction winning rate, but also increase transaction costs, and the long-term accumulation of handling fees is also a large amount.

2. Set Take Profit and Stop Loss: After the order is successfully placed, you must set the Take Profit and Stop Loss in time, especially the use of the Stop Loss function. It is difficult for you to predict where the bottom and top of the contract market will be, and through the clever setting of stop loss, you can continue to enter the market with the remaining principal even if you are in the wrong direction.

3. Don't trust the opinions of others: Some people often doubt themselves when they see the real offers of some so-called "trading experts", or when they hear that the opening directions of friends around them are inconsistent with their own. In fact, it is not. There are no winners in the investment market, even Buffett is no exception. If the order is based on his own rational judgment, then there is no need to change it easily.

After billing:

1. Overcome greed: Greed is human nature, but if you want to win the contract, you need to learn restraint. When making a profit, it is necessary to stop the profit in time, and it is safe to fall into the pocket. In the face of loss, if the amount of loss exceeds 10% of the total amount of the position, the risk is high at this time. It is recommended to close the position decisively and adjust the state before entering the market. Don't have a fluke mentality. Judging from the painful experience of countless investors, there is a high probability that you will only lose more and more until the position is liquidated.

2. Learn to summarize: After completing an order, we need to summarize. The market is our teacher, whether it is profit or loss, adjust the mentality, summarize the experience and lessons brought to us by each order in time, and constantly optimize the trading strategy, find the strategy that belongs to your own trading style and trading skills, so as to improve the trading fault tolerance.

Considering the uniqueness of each trader and the difference in the knowledge they have at the technical level, the above-mentioned opening suggestions are relatively simple, but they are suitable for most people, especially newcomers who have just entered the market. Trading is a kind of knowledge, so-called practice can bring true knowledge. If you want to make continuous profits in contracts, you need to form your own set of trading strategies by constantly opening orders and trading, and replace the feeling of unreliability with strategies.

*The above content does not constitute any investment advice