The market has been jumping up and down in the past few days. If trend traders chase ups and downs in this market, they are likely to suffer capital wear and tear.
So how should similar market conditions be operated?
1 First, determine the market trend.
BTC will hit the 100,000 mark in the short term, and the market is in the peaking stage before Christmas. The pressure from above is relatively large, but it is not advisable to intervene in short orders before the pin is inserted.
2 Secondly, wait for trading opportunities.
The overall upward trend cannot be shorted head-on. If the leverage and margin are not well controlled, it is easy to blow up the position and lose the principal.
When the market adjusts downward and closes the pin, don't rush to chase up and intervene, and wait patiently for the second exploration opportunity after a few hours.
How should you seize the second exploration opportunity?
Go long with high leverage? This operation has both advantages and disadvantages. The advantage is that the market will get good results if it is adjusted and violently pulled back; the disadvantage is that the wrong entry point will lead to excessive losses or even blow up.
So what should be done?
Buy the end-of-day option of mainstream coins. Options have a very obvious advantage over futures contracts - the limit of loss. The maximum loss is the reserve for buying call and sell options, and no one else will be affected.
