Principles/Experiences/Lessons of Contract Trading
1. Position Control, Never Lose Chips, Stay at the Table
Details involve observing token price volatility and bottoming areas. For example, if BTC fluctuates only 10% in a month, playing 30x short-term is possible. However, a 2% fluctuation in the gain leaderboard within a minute can be dangerous if it's over 5x.
Develop the habit of managing positions with segmented entries;
Develop the habit of placing stop-loss orders before sleeping as a precaution against black swan events;
2. Strongly advise against full-time trading with debt
At this time, your psychological pressure will make it harder to overcome human weaknesses, which is a disadvantage in trading.
It is recommended that you first pay off loans with a solid and legitimate job and career, improve your understanding during this time, invest with spare money, learn to befriend time, and do not rush. If you are not successful by 30, wait until 35; if 35 doesn't work, wait until 40. Have the courage to plan your life.
3. Taking Profit and Cutting Losses Are as Important as Judging Trends; They Are Core Trading Qualities
Taking Profit: Almost everyone incurs losses because of their mindset. Expected profits from your positions should be settled in a timely manner, and never regret selling too early or missing out; this reflects your mature trading system.
Cutting Losses: A loss of 10% requires an increase of 11% to break even, while a loss of 90% requires a 10-fold increase.
