I see many bloggers saying they opened 5x or 10x leverage, and that is already very small.

I really have no words. In fact, I want to tell you, you are all wrong.

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

With the volatility of crypto being so great, open positions evenly in batches, about 10~20% of the capital each time is sufficient. The total position should be limited to about 2 (short) to 4 (long) times the principal, with the overall stop-loss risk at a high value ideally within 20% of the principal (or the actual psychological tolerance must also be less than 20%). It is recommended to average the risk over time at 10%, meaning there will be some time in a flat position... Some may ask, then why do contracts at all... Hehe... Saying this might offend the entire cryptocurrency circle; do you really want to earn coins or make money? Is there a more flexible speculative tool than contracts? Is USDT really a useless asset? In the face of a bear market, which is safer, coins or USDT? When you spend money, do you spend coins or USDT?

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

The essence of contracts is trading risk. Or to say it another way, using risk management and expectations to make money.

When doing contracts, you must clarify this sentence.

You can choose not to believe in technology, not believe in market makers, not believe in candlestick charts or moving averages, not believe in BTC, and think they are all scammers; you can also choose to believe in these. These conceptual issues will not hinder your ability to make money.

But there is one thing you must understand: 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 understanding... Originally, if you invest in a coin and its value doubles, you earn 100%; then if you do a contract with 3x leverage, resulting in a 300% profit, do you know where that extra money comes from?

——For contract trading, what you actually earn is the money from risk management, which is the money given to you by others' losses and liquidations. To get 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 view the market. It's like looking at a mountain from the bottom versus overlooking it from the top; it’s not the same thing at all. For example, those who buy coins can hold their positions until they rise, endure losses, and emphasize patience... But in contracts, if you hold a position waiting, endure losses, you likely won’t survive the first three episodes.

Therefore, operations based on [risk] management are completely different from operations based on [dreams]. In the trading market, dreaming costs money, while those who manage [risk] aim to take this money.

So, do you want to be a [dreamer] or a [risk manager]? It depends on yourself. However, [dreamers] should not play with contracts; doing contracts can shatter beautifully crafted dreams within days—it’s too quick to wake up.

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

Yes, making money from contracts is not difficult... After all, there are so many people who liquidate and send money. They are racing on the edge of a cliff; you just need to wait at the bottom of the cliff and pick up some parts to get by.

The difficulty lies in the fact that it is inherently counterintuitive; basically, you have to go against the common person's thoughts like 'getting rich overnight.' Every time you are eager to increase your position or open a position, you should think about what it means to [go against human nature].

…If buying coins is like fishing, then doing contracts is like stepping into a boxing ring... That’s why I say there’s a lot of time spent in a flat position; this is very normal. Waiting, testing, retreating, trying again, waiting again... This is the norm for successful speculators.

In fact, for a period, strategies are almost straightforward and can be said to be known by everyone.

For example, on February 14, 2022, many teams' operational strategies are: shorting most cryptocurrencies while timing to long BTC as a hedge.

The reasons are not many to discuss; think of yourself as a big shot in the cryptocurrency world and then extrapolate. This is such an absolutely profitable strategy that even if people operate contracts, 80% of them won't make money.

And 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 why holding time is much shorter when shorting, how to handle stop losses in shorting, how to short various technical cryptocurrencies... The stop-loss strategy for contracts needs to have theoretical backing, which is worth learning; the value of stop-loss theory is at least half of what you invest in contracts. If you can't find one, you have to derive one yourself (I did this; I found someone, but they were unwilling to teach, so I deduced a set myself). A complete set of theories means a complete set of operations; strictly executing it will always present opportunities.

Trading is like this; on the surface, it's extremely simple—a buy and a sell (one minute on stage), but countless people have worked hard behind the scenes (ten years of hard work off stage)... In general, this is a profession. It's not that beginners can't do it, but you must earnestly study and train before you can truly enter the arena.

I often compare flying a plane to doing speculation. The reason is that these two are quite similar; forcibly trying to fly a plane without knowing how will lead to disaster, and forcibly trying to speculate without knowing how will inevitably lead to liquidation.

Risk management and stop-loss management are equivalent to the most basic skills of flying a plane. With this, you can at least ensure you won’t die.

Keep following:$PIXEL $GRT $XRP

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