Regardless of the strategy employed, the following principles are the foundation of safe operation:
· Strict Risk Control: Set a stop-loss before each position. It is recommended to limit individual losses to 1-2% of total funds. · Use Leverage Cautiously: High leverage is a "double-edged sword." Beginners should start with low leverage of 3-5 times or less. · Follow the Trend: Avoid guessing bottoms during declines ("bottom fishing") or tops during rises ("top picking"). · Plan Your Trades: Overcome emotional trading and decisively exit when reaching profit targets or hitting stop-loss levels.
📈 Strategy Selection Recommendations
You can choose a strategy based on your experience level and study it thoroughly and strictly.
1. Basic Short-term Strategy (Recommended for Beginners)
· Suitable for: Beginners, those with ample time · Time Frame: Minutes to several hours · Core Operations: · Use very small positions (e.g., 1-3% of total funds) and low leverage. · Focus on short-term fluctuations of mainstream coins (such as BTC, ETH) to seize quick gains and drops. · Set clear take-profit and stop-loss levels (e.g., profit of 3-5% or loss of 1-2%, then exit).
2. Trend Swing Strategy
· Suitable for: Traders with some analysis skills · Time Frame: Several days to weeks · Core Operations: · Use technical analysis (such as moving averages, support and resistance levels) to determine medium-term trends. · Enter during trend retracements, trading in the direction of the trend. · Use wider stop-losses than short-term strategies to capture larger swings.
3. Breakout Trading Strategy
· Suitable for: Traders who can patiently wait for opportunities · Time Frame: Several hours to days · Core Operations: · When the price consolidates near key levels (such as previous highs or dense trading zones), place orders in advance in the breakout direction. · Follow the breakout to enter the trade, setting the stop-loss below the breakout point.
4. Advanced Strategies (Beginners should be cautious)
· Rolling Positions / Compound Interest: Increasing positions after profits to amplify gains, but risks increase sharply, potentially causing "lightning crashes." · Martingale (Doubling Losses): Doubling the position after a loss to try to recover costs, which can lead to liquidation in extreme market conditions. Beginners should avoid using this strategy.
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🎯 Core Operating Principles
Regardless of the strategy employed, the following principles are the foundation of safe operation:
· Strict Risk Control: Set a stop-loss before each position. It is recommended to limit individual losses to 1-2% of total funds.
· Use Leverage Cautiously: High leverage is a "double-edged sword." Beginners should start with low leverage of 3-5 times or less.
· Follow the Trend: Avoid guessing bottoms during declines ("bottom fishing") or tops during rises ("top picking").
· Plan Your Trades: Overcome emotional trading and decisively exit when reaching profit targets or hitting stop-loss levels.
📈 Strategy Selection Recommendations
You can choose a strategy based on your experience level and study it thoroughly and strictly.
1. Basic Short-term Strategy (Recommended for Beginners)
· Suitable for: Beginners, those with ample time
· Time Frame: Minutes to several hours
· Core Operations:
· Use very small positions (e.g., 1-3% of total funds) and low leverage.
· Focus on short-term fluctuations of mainstream coins (such as BTC, ETH) to seize quick gains and drops.
· Set clear take-profit and stop-loss levels (e.g., profit of 3-5% or loss of 1-2%, then exit).
2. Trend Swing Strategy
· Suitable for: Traders with some analysis skills
· Time Frame: Several days to weeks
· Core Operations:
· Use technical analysis (such as moving averages, support and resistance levels) to determine medium-term trends.
· Enter during trend retracements, trading in the direction of the trend.
· Use wider stop-losses than short-term strategies to capture larger swings.
3. Breakout Trading Strategy
· Suitable for: Traders who can patiently wait for opportunities
· Time Frame: Several hours to days
· Core Operations:
· When the price consolidates near key levels (such as previous highs or dense trading zones), place orders in advance in the breakout direction.
· Follow the breakout to enter the trade, setting the stop-loss below the breakout point.
4. Advanced Strategies (Beginners should be cautious)
· Rolling Positions / Compound Interest: Increasing positions after profits to amplify gains, but risks increase sharply, potentially causing "lightning crashes."
· Martingale (Doubling Losses): Doubling the position after a loss to try to recover costs, which can lead to liquidation in extreme market conditions. Beginners should avoid using this strategy.