For exchange trading, you can generally buy at a lower price and Hold till the price is higher, but for margin trading, to hold too long maybe cost you a lot.
In order to Avoid Big Loss and to make some profit every day, you have to follow the following rules:
#1 Limit the positions
Only one margin trading position any time.
#2 Follow the TA
Only open long when there is a bull, and only open short when there is a bear.
When there is a bull on a big frame, such as 1h, open and Close a long position according to a small frame, such as 1 min.
When there is a bear on a big frame, such as 1h, open and close a short position according to a small frame, such as 1 min.
#3 Set a stop-loss
When a position is opened, it is supposed to be profitable, if not, then the TA is wrong, and the position is in loss.
In this case, you have to close it according to the 1 min chart with a stop-loss, don’t hold with blind hope.
#4 Don’t hold a position
Although you have set a price alert for stop-loss, you can’t make sure the alert will be delivered in time, and even it will,you can’t make sure that you can see the alert in time, especially when you are sleeping, and even you can, you can’t make sure to enter your account to close the position in time, what if there is no internet then?
So, close your position when leaving the chart, whether with profit or loss.
#5 Respect your plan
These rules may be not the best, but they works, you maybe only make a little profit every trade, but you will avoid big loss, and make a lot later.
So, these are the final rules of margin trading, each of them costed me a lot, you have to respect and follow them, seriously and strictly.
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