Contract players, why do you keep losing (who is your opponent)?
Playing contracts in the B-circle can be said to be a life-and-death situation. No matter your circumstances, you either get liquidated or break even. Just ask people around you, and you will know that profit in contracts is less than 20%. It's that cruel, but why is it like this?
The crypto world is brutally harsh; one general can lead to the eternal dry. You can see the earnings situation of various coins, except for those recommended like hedeng, 半木夏, 比特皇, etc., there’s also a person named 凉兮 who made 30 million in less than a month, now owes 10 million. How many can you see with positive earnings?
Someone posted a chart showing that a 0% return in January exceeded the earnings of 88% of people, and a 0% return in November exceeded the earnings of 92% of people. This might not really be a joke.
Have you encountered those big players in stocks, forex, futures, etc., who were extremely impressive, but then came to the B-circle and were knocked down in a few days? The knowledge or experience learned previously seems mostly ineffective in the B-circle. Have you thought about why?
Let's start from the beginning. The B-circle is also part of finance; if someone makes money, someone else must be losing. Moreover, the B-circle does not have products with production value, unlike traditional stock markets. It’s a more purely financial game. Let’s just treat it as a game.
First, let's look at the participants, which is to say, who is your opponent?
Project party
Market maker
Trading platform
First-level investment institutions
Retail investors
These are the main players; they all want to make money. Who do you think is more likely to lose money? Most likely, it's the retail investors. Spot trading can lead to losses, and then let's see how contracts continue to make you lose.
First, the project side and the market makers can basically be considered the same group, or most of them are related. They want to make money, and they must have enough chips in their hands. When the market depth is relatively small, they can drive prices up with minimal costs. About 20 days ago, my friend only needed 200,000 to push XCH up by 20% against the trend. They make the market active, and the market depth gradually increases. They don’t need to dump at the highest point; they just need to gradually sell their chips when the market depth is large enough without causing a panic sell-off in the overall price. They slowly sell off their chips without anyone noticing. At the same time, they not only control the spot market; while manipulating prices, they are also affecting contracts. The real significant crashes happen within contracts, where the largest sell-offs occur.
Since I learned to trade spot, I only lost money when the market dropped. Later, when I learned to trade contracts, I lost money whether the market went up or down. Then I learned futures, and I lost money even when the market was sideways.
Another opponent, trading platform, how do you think trading platforms make money? It's not just collecting fees; that's just a drop in the bucket. They also have listing fees, but the most significant earnings come from contract liquidations and contract losses; these are the main sources of their income. How do you liquidate or stop-loss in such a position? First, when the entry price is 1, you short, and your stop-loss/liquidation price is 1.1. Now the price is 1.08, and suddenly it jumps to 1.13, then instantly retraces back to 1.078. Your order or stop-loss is gone; this is a trading bot that wipes out your position and then returns to a reasonable level. Or it could directly cause a double kill for both long and short positions. As long as you don't mention B, trading platforms can infinitely issue funds, either by inserting spikes or other tactics. How can you possibly outsmart trading platforms? This is still one of the top three platforms, not to mention smaller platforms that just run away.
Finally, let’s talk about retail investors. Are there any who can make money? There are definitely some, like those contract big players who turn tens of thousands into millions, but such people are extremely rare. Most people are losing. How can one make money? I think there is only one method, which is to follow the trend. If the trend is wrong, how can even the most skilled techniques help? Secondly, it's about training your ability to endure and withstand pressure. Those indicators must be learned; moreover, when learning indicators, you must also practice trading. Use small funds to trade or create your own spreadsheet, truly set your indicators, and operate with hundreds or thousands of orders to implement stop-loss and take-profit strategies. Any strategy is just a reference; ultimately, it depends on your own market sense. There is no unchanging profit strategy.
With so many opponents, why do you think you can make money? It requires both skill and luck. Why do you deserve to profit? Are you the chosen one? Ask yourself this question.