Why do you always end up liquidating when trading contracts?
1. Risk management is key: In contract trading, many people overlook risk control, which ultimately leads to liquidation and losses. In the process of making profits, what you really earn is the money left by others after they liquidate. Therefore, in contract trading, one must not only understand how to trade but also deeply comprehend how to manage risks and avoid liquidation.
2. The difference between dreamers and risk controllers: Ordinary people may have a 'dream' mentality, believing they can quickly make a lot of money through contract trading, while truly successful traders know how to control risks and operate calmly. It's like contract trading is a game of risk, rather than solely relying on intuition or dreams.
3. Successful contract traders are often those who are patient: Contract trading is not like buying coins, where simply holding can earn money. Contract trading requires repeated operations such as probing, retreating, waiting to re-enter, etc., which are contrary to the 'eager for success' mentality of ordinary people. Therefore, patience and discipline are key to success in contract trading.
4. Human nature's reverse operation: When trading contracts, one often has to operate in opposition to the emotions and behaviors of ordinary people. Many people make irrational trades due to greed and fear, while successful contract traders know how to avoid these emotions and remain calm and rational.
5. The core of contract trading is calculating and controlling risks: Compared to investing in the coin market, contract trading requires more rigorous strategies and risk assessments. When trading contracts, capital management and predicting market fluctuations are crucial.
In summary, contract traders must clearly recognize that 'risk' is the core of trading success. Many people fail due to emotions, blindly following trends, etc., but only those traders who can rationally control risks are likely to achieve lasting success in this market.
