Why are there still so many people playing in the cryptocurrency contract market even after liquidations? (1) When trading contracts, you must understand this statement clearly.
You may not believe in technology, not believe in market makers, not believe in candlestick patterns or moving averages, considering them all to be scams. You can also choose to believe in these things; these conceptual issues will not hinder your ability to make money.
But there is one thing you must understand, and that is [risk]. What is risk, how to manage risk, how to calculate risk, how to operate risk, how to withdraw from risk, how to survive.
You cannot earn money outside your cognitive range. Originally, you invest in a coin, and if its value doubles, you earn 100%. Then if you trade contracts at three times leverage and make 300%, where does that extra money come from? Do you know?
In contract trading, what you earn is actually money from risk management, money given to you by others' losses and liquidations. To access this money, first, you must not be liquidated.
In fact, looking at the market from the perspective of [risk] is completely different from how ordinary people see the market. It's like looking at a mountain from the base versus looking down from the summit; it's a completely different experience. For example, people who buy coins can hold onto their positions waiting for prices to rise and endure losses with patience. However, in contract trading, if you hold onto a position waiting for losses, you will most likely not survive the first three episodes.
Therefore, operations based on risk management are completely different from operations based on dreams. In the trading market, dreaming comes at a cost, while those who manage risk aim to seize that money.
So, do you want to be a dreamer or a risk manager? It depends on you. However, dreamers should not trade contracts; doing so can shatter dreams built over years within just a few days, and that awakening can be too sudden.
Anyone who has made a lot of money will feel like they were almost just picking up money during that time. That’s about right. But when your opportunity comes, that is to say, when it’s your turn to pick up money, you must be alive and have the capital to pick it up.
