Trade Positioning: High leverage intraday trading, generally holding positions for 2-12 hours, take profits and stop losses in a timely manner.
In the past few days, I have developed some bad habits that are fatal to my trading habits, resulting in many unnecessary losses.
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Not stopping losses in a timely manner, no lower limit for stop losses. I have always strictly set a 25% stop loss for the current position because my capital is not large, so I am willing to take on more risk and have not adopted risk calculation methods such as 1R or 0.5R. Instead, I directly set 25% of the current position as the maximum loss. Sometimes I don't want to take a 25% loss and re-enter at a new position, so I keep widening the stop loss range, resulting in a large amount of losses. Strict stop loss should be set, just like liquidation, close the position when it crosses the line.
If some friends still don't know, R represents the percentage of the loss amount borne in the current trade to the total account amount, 1R is 1%, used to calculate a reasonable position amount to effectively control risk. It is better to use this method when the capital is large. -
Overfilling to adjust the entry point. Similar to adding margin, in order to prevent the 25% stop loss portion from being used up, I will add to the position in the same direction when it reaches a 25% loss. The result is that the wrong cost is greatly increased, and continuously adding to the position with the available funds causes more losses. Because I tasted a little sweetness the first time the day before yesterday, I kept using it afterwards. I should quickly admit my mistake and find a new entry point or a new opportunity.
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When BTC has a big move, prioritize BTC. Only when BTC is volatile do others have a chance. If you haven't outperformed BTC, quickly switch to other coins to find trading opportunities, don't rely on catching up. I was consumed by FET on a big rise day and didn't outperform any coins, I cried. What's even worse is that I was on track with FTM before, the arrows on the chart were all drawn by me at that time, completely consistent, but I left halfway... Only when a downtrend appears, should you switch coins. I was greedy at the time, thinking that I could have more capital, but after closing the position and entering a high leverage, it is easy to lose more than gain by finding a suitable entry point again.
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Profit-taking points should be judged in advance. Always be aware that I am doing intraday trading, not holding for multiple days. Because of the high leverage, the risk that can be tolerated is very limited, so only one wave is done, don't be greedy for more profits. When entering the market, you should judge the take-profit point based on the nearest resistance level.
❌APT#
Taking the APT trade as an example, the take-profit was set arbitrarily high, exceeding the resistance level that my trading style can likely reach, and there was basically no profit in the end. After reviewing the 1-hour chart, I found that it had already passed two key levels below, 12.85 and 13.03, which would have been good take-profit points.
✅ETH#
- I learned from the lesson in the ETH trade, after failing to find an entry point, I re-entered and found the key level to take profit and exit smoothly.
- x100 leverage is still too high, I was stopped out the first time, and almost stopped out the second time. I should use around x75 leverage next time.