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Dear friends, trading contracts like DUSK that have experienced explosive surges is like dancing on the edge of a knife. We've previously analyzed the technical and fundamental logic in depth, now let's focus on the most critical issue—how to survive and truly secure profits.
Honestly, in such highly volatile markets, surviving is winning.
How has DUSK been performing recently? Intraday fluctuations often exceed 15%. What does this mean for contract traders? Your carefully set stop-losses can easily be wiped out by normal market fluctuations. Conversely, if your market direction is correct, profits can accumulate rapidly. Therefore, we need to design trading strategies specifically tailored to this high-volatility environment.
**Tip 1: Shorten Trading Cycles to Capture Short-term Waves**
When the trend is clear but volatility is huge, thinking about "bottom fishing and top selling" and then sleeping through it? That only adds psychological pressure and exposes you to overnight risks. A smarter approach is to reduce your trading cycle from daily charts to 1-hour or 4-hour wave-based operations.
How to do it? Look at smaller charts like 15-minute or 1-hour to find opportunities. For example, consider opening a long position when the 1-hour Bollinger lower band and RSI enter oversold territory; or close your position or switch to short when RSI shows divergence at the 1-hour chart near the upper band. The key is to enter and exit quickly—don't be greedy.
**Tip 2: Recalculate Position Sizes and Stop-Losses Based on Volatility**
In high-volatility environments, position sizing and stop-loss settings must be adjusted accordingly. The trades you dare to take in normal markets should be scaled down here. This is not cowardice; it’s a respect for the nature of volatility.