Having been in the cryptocurrency market for 10 years, to be honest, I’ve seen too many tragedies of 'always losing when opening, precise liquidation'.
Does it often happen like this? You see a good market, open a position confidently, and then you come back from the restroom, and your position is gone!
In simple terms, contracts are about playing large positions with small amounts of money. It sounds great, but essentially it’s leverage +!
Leverage amplifies your profits while also amplifying your risks! Originally, you could interact with the market back and forth, but with contracts, it's a winner-takes-all situation!
For example, if you have 100 bucks and open a 10x leverage, it’s like controlling a position of 1000 bucks. If the market rises by 10%, your profit doubles! But if the market goes against you by 10%, sorry, direct liquidation, and your account is cleared!
The contract market is a zero-sum game +; every penny you earn is a penny someone else loses, and vice versa. This is not a struggle between retail investors but a contest between retail and large funds!
What really drives the market are the operators + and institutions +! They don’t care about short-term ups and downs; they focus on the stop-loss positions in the market +! They will first wash out small players and then decide whether to push up or dump the market!
When there are too many long or short positions, large funds will take advantage of the volatility to hit the liquidation points of leveraged players! After a batch of people are passively forced out, they will then control the market and proceed at their own pace!
So beginners are often the first to get washed out. Why? High leverage, positions are hard to manage, making them the easiest to be harvested!
If you want to survive in the cryptocurrency market, remember one thing: do not trade for profit, but trade for safety!
If you want to achieve stable profits, first put aside your anxious desire for quick success and fantasies of getting rich overnight!
In fact, trading in the cryptocurrency market can be said to have the lowest cost.
In stocks, one contract can cost a few hundred, and a loss can be tens.
In futures, one contract can cost thousands, and a loss can be over a hundred.
In the cryptocurrency contract market, you can open 1U or even 0.5U. Set a 3% stop-loss, and you might lose a few bucks at a time.
In the cryptocurrency contract market, you can open 1U or even 0.5U. Set a 3% stop-loss, and you might lose a few bucks at a time.
With such cheap learning costs, what’s the rush?
Once you learn it, the world is yours.
The risks of contracts: large fluctuations, easy liquidation.
The benefits of contracts: large fluctuations, easy to make big profits.
Many beginners play contracts without experience and skills, lacking the understanding of the intrinsic relationship between risk and reward. When you are not profitably stable, you should respect the great risks of contracts and the drawbacks of easy liquidation.
When you can achieve stable profits, you should be grateful for the large fluctuations and great benefits of contracts. Therefore, to succeed, you need to achieve stable profits.
As someone who has been through it, let me tell you: in trading, technically speaking, it mostly involves studying patterns, candlesticks, and technical indicators. Is it difficult? If mastering these techniques could guarantee profits, then the top students would all be trading experts. In reality, what matters most in futures and stock trading is experience.
This experience includes: mindset, how to handle market situations. How to reconcile with oneself during losses, and how to increase confidence during profits.
So realizing this, to transition from a novice to an expert in the cryptocurrency market, you need to strengthen the following types of training: 1. Identify a technique or pattern and practice it thousands or tens of thousands of times.
Contracts carry high risks and can easily lead to liquidation. If you start with 1U and set a stop-loss at 3%, you can play with 100U for thousands of times without issue. Before achieving stability, contracts have all drawbacks; once you can consistently profit, isn’t it all advantages?
Learning costs 100U; what do you do without a learning cost?
When you can avoid losses or even make small profits, gradually increase your position size. 10U. 100U.
Only practice makes perfect!
