Things to know for entering the B circle
Decide whether to touch contracts after reading
For beginners who want to trade contracts: This is the most honest confession, decide whether to touch it after reading!
Hello, I am an old player in the crypto circle, and these past two years I have broken the fate of being a novice through intelligent systems, offering three free consultations daily for any questions.
This article is not to teach you how to make money, but to tell you how brutal the path of contracts can be. If you clicked in with a 'get rich quick' mindset, I suggest you slide away now, as there are no shortcuts here, only lessons of blood and tears.
Contracts are not investments, but rather a zero-sum game.
What is a contract? Simply put, it is betting on the rise and fall of cryptocurrency prices with a small amount of money. You might only use $100 to control a position of $10,000. When you get the direction right, the profit is magnified; but when you get it wrong, the loss is also magnified, until your principal goes to zero. This feeling is like dancing on the edge of a cliff, where every step could lead to ruin.
The three most common mistakes beginners make:
* Heavy betting without regard for risk: Beginners love to gamble with the highest leverage and maximum principal. If they win, they think they are geniuses; if they lose, they are devastated. But true contract experts never put all their chips in one basket.
* Frequent trading, chasing highs and cutting losses: The pleasure and pain of contract trading lie in 'speed.' When you see price fluctuations, you can't help but want to enter the market, resulting in going long and short in quick succession, draining you with transaction fees.
* No stop loss, hoping for a miracle: This is the deadliest. When your position starts to lose, you will think, 'Wait a bit, it will go back up.' The result is waiting until liquidation, and you lose everything. A stop loss is not admitting defeat, but protecting your principal, giving you a chance for the next battle.
Words of wisdom for beginners:
* First learn to protect your principal, then talk about profits. Treat contracts as a 'high-level dungeon' in your investment career, rather than your only game. Start with a small principal, or even practice on a demo account to feel the market's volatility and pressure.
* Do not trust any promises of 'signal trading' or 'guaranteed profits.' Scams abound in the crypto world, and those so-called 'teachers' usually just want to earn your transaction fees or principal. Your money is your responsibility alone.
* Always maintain a learning mindset. Understand the cryptocurrencies you are trading, learn technical analysis, and grasp market sentiment. The path of contracts has no end, only evolving traders.
Finally, I want to say that contracts are not the devil, but they will amplify your weaknesses. If you do not have enough discipline, a strong mindset, and the ability to learn, please stay away from it. If you are ready, start by protecting your principal and embark on this challenging path. Daily limited three free consultations for any questions, follow me, and I wish you become a rational navigator in this vast sea, instead of a drifting log swallowed by the waves.
I am Awen, focused on analysis and teaching, a mentor and friend on your investment journey! I wish everyone investing in the market smooth sailing. As an analyst, the most basic thing is to help everyone make money. I will help you solve confusion, locked positions, and provide operational advice, speaking with strength. When you lose direction and don’t know what to do, follow Awen to find your way.