How to control emotions
To be honest, it is difficult for you to completely control your emotions, but what you can do is to reduce the influence of emotions on trading activities by formulating rules, plans and mechanisms before entering the transaction.
1 Reduce transaction size
The easiest way to reduce the intensity of trading sentiment is to reduce the size of your trading. If you set a rule for yourself that your trading volume will never exceed a certain percentage of the funds available in your account, then you will reduce the weight of each transaction and spread it over several positions. If you have different levels of risk exposure at different price points, you will not let fear of what is happening in the market affect your decision-making. In addition, if you need a little capital to avoid margin calls, it is always helpful to have some resources in your account to cover short or long positions.
2 Set stop loss and take profit
Before you trade, calculate how much you are willing to lose if the trade does not proceed in the way you imagined. Then see how this compares to the potential return. If the trade is worthwhile, it is helpful to place stop loss and take profit orders when you place the initial trade. By doing this in advance, you basically don’t have to make a decision when the market is disadvantageous or advantageous to you. You have set it up, now you just need to make this happen. Some traders like to use automated trading strategies to further reduce their active trading.
3 Develop a trading strategy and stick to it
No matter what your trading strategy is, stick to it. Don't increase your bet just because of a few good moves, and risk more than the initial set of capital. In addition, it takes a long time for a strategy to be validated. If you break away from strategy, you cannot know if you are on the right path. So when you do have some losses, you are likely to switch strategies again and place random orders in order to chase losses. Of course, you do need to change your trading strategy sometimes, but only when market conditions change-not just because a few trades are unsuccessful.
4 Accept the loss
It is important to realize that loss is part of the transaction. This is more than just shortening the lost time. What it really means is that you should realize that most traders will suffer losses, and even the best traders will only win 6 out of 10 times. Wanting profit in every transaction will only make you anxious when the transaction goes bad. At this point you will start to make decisions that are not planned. If your transaction size is appropriate, you have developed a strategy, determined your risk and return levels, and placed a stop loss and take profit order, all you need to do is let the transaction proceed.
The above strategies may sometimes be effective, but they may also be ineffective. However, frequent analysis, summary and refinement of your strategy can improve your crypto trading skills.
Analysis of some highlights of the xmex platform
1. Open order, stop profit and stop loss: XMEX sets the stop profit and stop loss option when opening an order, which is convenient for users to operate. The purpose is to remind users to consider risk prevention and cultivate good contract trading habits.
2. Ladder liquidation: liquidation of the whole position will retain half of the bottom position . The XMEX trading platform uses marked prices to calculate the user's unrealized profit and loss. The mark price refers to the spot price index of the top three stock exchanges plus the decreasing fund cost basis. It can ensure that the user's position risk is reduced under the premise that the price cannot be manipulated. On this basis, XMEX uses a partial liquidation method, which will automatically try to reduce the position margin requirements and prevent all users' positions from being liquidated.
3. At the same time, it supports full position by position, open orders in XMEX, and supports both whole position and position by position. The purpose is also to facilitate users to adjust their positions to meet every trading habit.
4. Multi-position mode: For positions in the same currency, several independent positions can exist at the same time, and each position will independently calculate the margin and strong parity, which is the most acceptable for novice users. Easy to operate, this function setting can help users track the profit and loss details of each order.
5. One-click reverse order opening: When the user finds that the market trend does not match the judgment after opening an order, he can choose one-click reverse order opening to achieve the effect of quickly grasping the market and turning losses into profits in an instant.
6. One-click copy orders, up to 125 times leverage.
7. The latest hot features are online
[XMEX function is new] Spread protection function officially released
Extreme market stop profit and stop loss are often accidentally triggered?
Come to XMEX to open the spread protection function
Let you trade more at ease under extreme market conditions!
Author/Senior Writer/Industry Research Expert/Zhou Wen World Official WeChat: btshijie (Docking Wei Code). Support sharing by retaining the author's source, please retain the author's copyright information for reprinting, and offenders must be investigated.