I see many bloggers saying they have opened 5x or 10x; leverage is already quite small.

I am really speechless. In fact, I want to tell you, you are all wrong.

Leverage is not calculated this way at all. The leverage ratio calculated by the platform has nothing to do with you; it is more about the proportion that affects the platform's safety. You should calculate risk based on stop-loss or full principal.

With the volatility of crypto being so huge, open positions evenly in batches, around 10~20% of the principal each time is fine, with a total position limit of about 2 (short) to 4 (long) times the principal. The overall stop-loss risk value at the same time should be within 20% of the principal (or the psychological actual bearing range must be less than 20% simultaneously). It is suggested to average the risk over time at 10%, meaning there are times when you are out of the market... Some may ask, then why still do contracts... Hehe... Saying this might offend the entire crypto circle; do you really want to earn coins or make money? Is there a more flexible speculative tool than contracts? Is USDT really a waste? When the bear market comes, which is safer, coins or USDT? When you spend money, do you spend coins or USDT?

Dear friends in the crypto circle, doing contracts (pure speculation) is completely different from investing in coins (similar to venture capital); they are two completely different professions.

The essence of contracts is trading risk. Or rather, using risk management and expectations to make money.

When doing contracts, you must clarify this statement.

You can choose not to believe in technology, not to believe in the market makers, not to believe in K-line moving averages, not to believe in BTC, and consider them all frauds. You can also believe in these; these conceptual issues will not hinder you from making money.

But there is one thing you must understand, and that is 【risk】; what is risk, how to control risk, how to calculate risk, how to operate risk, how to withdraw from risk... how to survive...

-------You cannot earn money beyond your cognitive range... Originally, if you invest in a coin and its value doubles, you earn 100%; then in contracts, if you do 3 times, the result is earning 300%, where does this extra money come from, and whose is it, do you know?

——In contract trading, what you earn is actually the money from risk management, which is the money given to you by others' losses and liquidations, and to get this money, first, you cannot be liquidated...

In fact, looking at the market from a【risk】perspective is completely different from how ordinary people view the market. It's like looking at a mountain from the bottom versus having a panoramic view from the top; they are entirely different. For example, those buying coins may hold their positions and wait for the price to rise, enduring losses with patience... but in contracts, if you hold your position and wait, enduring losses, you likely won't survive the first three episodes.

Therefore, operations truly based on 【risk】 management are completely different from those based on 【dreams】. In the trading market, dreaming costs money, while those managing 【risk】 strive to get that money.

So, do you want to be a 【dreamer】 or a 【risk manager】? It depends on yourself. However, 【dreamers】 shouldn't play contracts, as engaging in contracts will shatter the beautiful dreams built over years in just a few days, waking up way too quickly.

Anyone who has made a lot of money will have a feeling during the process: 'That time was almost like picking up money.' It's pretty much like that, but—when your opportunity comes, meaning: when it's your turn to pick up money, you need to be alive and have the capital to pick up money.

Yes, making money from contracts is not difficult... after all, so many people liquidate and give away money. They are racing cars on the edge of a cliff; you just need to wait at the bottom and pick up a few parts to get by.

The difficulty lies in the fact that it is inherently counter-intuitive; basically, you have to think the opposite of ordinary people's thoughts about 'getting rich overnight.' Whenever you are eager to increase your position or open a position, you need to think about what it means to 'go against human nature.'

……If buying coins is fishing, then doing contracts is stepping into the boxing ring... So I say that having lots of time out of the market is very normal. Waiting, testing, retreating, trying again, waiting again... this is the norm for successful speculators.

In fact, the strategies over a period of time are almost straightforward and can be said to be known by everyone.

For example, on February 14, 2022, many teams' operating strategies are: shorting most currencies while timing to long BTC for hedging.

There's not much to say about the reason; think of yourself as a big shot in the cryptocurrency circle, and then derive it. With such an absolutely profitable strategy, let people operate contracts, 80% of them still cannot make money.

Such a simple strategy actually contains countless details. For example, the simplest operational principles, why not short directly based on BTC, why shorting is much more conservative than longing, and much shorter in holding time; how to handle stop-loss when shorting, how to short various technical currencies… The contract stop-loss plan needs to have theory, which is worth learning; the value of stop-loss theory is at least half of what you invest in contracts. If you really can't find it, you must derive one yourself (I did this; I found someone, but they were unwilling to teach, so I derived a set myself). A complete set of theory means a complete set of operations, and strict execution will always bring opportunities.

Trading is like this; it appears extremely simple on the surface with just buying and selling (one minute on stage), but behind it, countless people have done the hard work (ten years of effort behind the scenes)... Overall, this is a profession. It's not to say that novices can't do it, but you must seriously study and train before you can truly enter the field.

I often compare flying a plane with speculation. The reason is that these two are quite similar; forcing yourself to fly a plane when you can't leads to disaster, and not knowing how to speculate but forcing yourself to do it will inevitably lead to liquidation.

And risk management, stop-loss management, is equivalent to the basic skills of flying a plane; with this, you can at least ensure that you won’t die.

Stay close to nostalgia, analyze with precise strategies, select with huge AI big data, and position yourself to be unbeatable? The market never lacks opportunities; the question is whether you can seize them. Only by following experienced people and the right people can we earn more!

Continued attention: TOKEN AI16Z SIGN

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