I saw many bloggers say that they opened 5x or 10x9, which is a very small leverage.

I'm really speechless. Actually, I want to tell you that you are all wrong.

Leverage is not calculated like this at all. The leverage ratio of 9 calculated by the platform has nothing to do with you. It is almost the share ratio that affects the safety of the platform. You should calculate the risk based on stop loss or full principal.

Crypto "For something with such a high volatility, open positions evenly in batches, with about 10~20% of the principal each time. The total upper limit of all positions is about 2 (short)-~4 (long) times the principal. The overall stop loss risk at the same time should be within 20% of the principal (or the actual psychological tolerance range must be less than 20%). The recommended time average risk is 10%, which means that there is a part of the time when the position is short... Some people may ask, then why do you still do contracts... Haha... I may offend the entire currency circle 9 by saying this. Do you really want to earn coins or make money? Are there any speculative tools more flexible than contracts? Is u-based 9 really useless? With the arrival of the big energy market, is it safer to be coins or u? When you spend money, are you spending coins or u? Dear friends in the currency circle, doing contracts (pure speculation) and investing in coins (similar to venture capital) are two completely different professions.

The essence of a contract is trading risk, or making money by using risk management and expectations.

When making a contract, you must make this sentence clear

You can not believe in technology, dealers, K-line moving averages, BTC9, and think they are all scammers. Or you can believe in these concepts. These concepts will not hinder you from making money.

But there is only one thing you must understand, that is [risk]. What is risk, how to control risk, how to calculate risk, how to operate risk, how to withdraw risk. How to survive... 000000

--You cannot make money beyond your cognitive scope. . . . . Originally, you invested in a coin, and the coin value doubled, and you earned 100%; then you tripled the contract and ended up making 300%. Do you know who earned this extra money and where it came from?

For contract trading, what you earn is actually the money from risk management, which is the money given to you by others due to losses and liquidation. To get this money, first of all, you must not have a liquidation. . .

In fact, looking at the market from the perspective of risk is completely different from how ordinary people look at the market. It's like looking at a mountain from the bottom of the mountain and looking at it from the top of the mountain. It's completely different. For example, people who buy coins can hold positions and wait for the price to rise, and bear losses. They are very patient. But if you do contracts, if you hold positions and wait, and bear losses, you will probably not survive the first three episodes.

Therefore, the operation based on risk management is completely different from the operation based on dreams. In the trading market, dreaming is to pay, and the people who manage risk are trying to get the money.

So, do you want to be a [dreamer] or a [risk controller]? It depends on you. However, [Dreamer 9] doesn't. This is too quick to wake up. To play contracts, contracts will make the beautiful dreams of years shattered in a few days. Anyone who has made a lot of money will have a feeling in the process of making money: "That period of time is almost picking up money", almost, but - when your opportunity comes, that is to say: when it is your turn to pick up money, you have to be alive and have the capital to pick up money.

Yes, it is not difficult to make money from contracts. After all, there are so many people who are losing money. They are racing on the cliff, and you just need to wait at the bottom of the cliff and pick up some parts to eat.

The difficulty lies in that it is bound to go against human nature. Basically, you have to do the opposite of ordinary people's ideas like "getting rich overnight". Whenever you are in a hurry to increase your position or open a position, you have to think about what it means to "go against human nature".

If buying coins is fishing, then doing contracts is like getting on the boxing ring... So I said that I was short a lot of the time, which is normal. Wait, test, retreat, try again, and wait again... This is the normal state of successful speculators.

In fact, for a period of time, the strategies were almost simple and clear, and almost everyone knew them.

For example, on February 14, 2022, the operating strategy of many teams is to short most of the 9 currencies and choose to go long on BTC for hedging.

I won’t go into the reasons, just imagine yourself as a big shot in the cryptocurrency circle and then deduce. With such a strategy that is absolutely profitable, 80% of people cannot make money by operating the contract.

Such a simple strategy actually contains countless details. For example, the simplest operating principle, why not short directly based on BTC, why shorting is much more conservative than long, and the holding time is much shorter, how to deal with stop loss when shorting, how to short with various technologies... Regarding the stop loss plan of the contract, it is necessary to have a theory, which is worth learning. The value of the stop loss theory is at least half of the value of your investment in the contract. If you really can't find it, you have to derive one yourself (this is what I did. I found someone, but he refused to teach me, so I deduced a set myself). A complete set of theories means a complete set of operations. If you strictly implement them, there will always be a chance.

Trading is like this. On the surface, it is extremely simple to buy and sell (one minute on stage), but countless people have done enough hard work behind the scenes (ten years of hard work off stage). Generally speaking, this is a profession. It does not mean that novices cannot do it, but you must study and train seriously before you can really play. I often compare flying a plane with speculation. The reason is that the two are similar. If you can't fly a plane and force yourself to fly, the result is that the plane will be destroyed and people will die. If you can't speculate, but force yourself to do it, you will inevitably blow up your position.

Risk management and stop loss management are equivalent to the most basic skills of flying an airplane. With this, you can at least not die.

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