Why are there still so many people playing #合约爆仓 ?
I see many people saying that they opened 5x or 10x leverage, and that the leverage is already very low.
I really have no words. In fact, I want to tell you that you are all wrong.
Leverage is not calculated like that at all. The leverage ratio calculated by the platform has nothing to do with you; it is roughly the proportion affecting the platform's safety. You should calculate risk based on stop-loss or full principal.
With such high volatility in crypto, it’s sufficient to open positions evenly in batches, with around 10-20% of the principal each time, and the total position limit should be about 2 (short) to 4 (long) times the principal. At the same time, the overall stop-loss risk should be high at around 20% of the principal (or the psychological actual tolerance must be less than 20%), and it is recommended to average the risk over time at 10%, meaning that there are periods when you are out of the market.
When trading contracts, you must clearly understand this sentence.
You can choose not to believe in technology, not to believe in market makers, not to believe in candlestick averages, not to believe in BTC, thinking they are all scammers; you can also believe the opposite. These conceptual issues will not delay your ability to make money.
But there is one thing you must understand, which is 【risk】—what is risk, how to manage risk, how to calculate risk, how to operate risk, how to withdraw 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 doing contracts at 3x, you end up making 300%. So where does that extra money come from, who earns it, do you know?
—— For contract trading, the money earned is actually the money from risk management, the money that others lose and get liquidated, given to you. To obtain this money, first, you cannot get liquidated...
In fact, looking at the market from the 【risk】 perspective is completely different from how ordinary people see the market. It’s like looking at a mountain from the bottom versus viewing it from the top; they are not the same thing at all. Just to give an example, people who buy coins can hold their positions and wait for a rise, enduring losses with patience... but in contract trading, if you hold your position and endure losses, you likely won’t survive the first three episodes.
