In the cryptocurrency market for several years, I believe I have outperformed 90% of contract traders. I have experience in funds, contracts, and arbitrage, and I have also been ruthlessly harvested by market makers. I have gone through all the pitfalls that one should experience.
People in the cryptocurrency world can experience a 50 to 100 times increase in value overnight, or they might instantly lose everything.
Playing contracts in the cryptocurrency market is like a heartbeat, thrilling and more stimulating than riding a roller coaster.
Have you ever experienced consecutive losses or frequent liquidations?
Then you feel frustrated and regret your decision?
I have watched countless tutorials, learned from many traders' summaries, and analyzed numerous reasons for failure! Here are some key points that I believe can help you:
1. Mindset and Emotional Management
Mindset and emotional management doesn’t mean you can’t be happy when you make a profit or feel depressed when you incur losses. It doesn’t make you a robot without emotions!
It’s about first firmly believing in your success, trusting that the current losses are only temporary, and truly developing a positive belief system. Additionally, when losses occur, it's crucial to maintain rationality and a calm mind, avoid placing blind orders, and analyze correctly and operate rationally.
2. Capital Management
There is a saying: 'As long as the green mountains remain, one need not fear for firewood.' You must not have a reckless mindset, as it is very dangerous. Once you entertain such thoughts, in most cases, the market will fulfill it, leading to your complete despair! You must strictly control this, summarize your maximum consecutive loss occurrences, and manage your funds, ensuring you have a chance to turn things around. This requires extreme calmness; only with chips left do you have a chance to be reborn!
3. Technical Analysis
This is extremely important; if you have no technical knowledge, you should never place orders, as that would be gambling on luck, and you will definitely fail, which is very scary! Learning technical indicators is a gradual process, but once you overly rely on various indicators for your judgments, you may frequently make mistakes and doubt the technology. Finding the indicators that suit you among so many is crucial to simplifying complexity. Commonly used naked candlestick patterns, Bollinger Bands, moving averages, MACD, volume bars, OBV, etc., all embody the essence of simplicity!
To make a long story short
Perpetual contracts, also known as perpetual futures contracts, are a type of derivative trading method. Users can use perpetual contracts to go long, short, or arbitrage to achieve returns that are many times higher than their investment capital.
Through perpetual contracts, you can not only make money by the rise in cryptocurrency prices but also profit from the fall in prices, and even leverage small capital to achieve large returns.
When trading with perpetual contracts, if you incorrectly predict price movements, you may face liquidation or risk losing all your invested capital.
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