The Bloody Lesson, A Must-Read for Newbies!!!
Many people believe that making money in contract trading is just about getting the direction right; based on my own painful experience, this idea is grossly mistaken!
When I first started with contracts, I lost 730,000 in just six months, with nothing left. What was even more frustrating was that I got the direction right several times, yet still ended up losing everything.
Later, I carefully reviewed my trading records and realized that I wasn’t losing to the market trends, but rather falling into three major traps carefully set by the market makers.
The first trap is being too impulsive. When the market shows even a slight movement, I can't help but place an order. Seeing the price break through a certain level, I recklessly jumped in with a full position, only to get immediately stopped out by the market makers’ manipulation, resulting in a significant loss.
The second trap is setting stop losses too rigidly. Many people like to set fixed stop losses at 3% or 5%, but the volatility in the contract market is much greater than in stocks; such a narrow stop loss is insignificant to the market makers. Stop losses shouldn't be set in a rigid manner; they need to be adjusted flexibly according to market volatility. One must not follow their emotions but should move with the market's rhythm.
The third trap is the tendency to go all-in with heavy positions. Putting all your capital into one trade is essentially handing over your fate completely to the market. Even if you get the direction right, as soon as the market fluctuates a bit and moves against your predicted trend, your account can be wiped out in an instant.
In this crypto market, those who make money are not just the ones who can predict the direction correctly, but those who can survive in the market.
This market is too complex and brutal; it’s tough to go far relying solely on oneself. Now, I have found a way to survive and profit in the crypto world. Would you like to follow me? 👉聊天室 for the next strategic layout; my team and I will aim for the lucrative opportunities in altcoins, with expected gains exceeding tenfold being quite achievable!