A few self-awareness points from an experienced trader for friends trading contracts!
1. First of all, everyone should know that for every coin listed on the exchange, the project team has a backend that can clearly see detailed data on buy and sell orders. They can set it to follow Bitcoin's trends, and almost all orders can be seen, so retail investors are transparent in front of them!
2. Trading contracts is essentially a bet against the project team. For example, it's like playing rock-paper-scissors, divided into three parties. In contract trading, there are long positions, short positions, and the project party (market makers ~ traders). Of course, the long and short positions act first. If the funds for long positions exceed those for short positions, the project team will ambush and short the contracts, profiting by selling the spot to drive the price down; conversely, if short positions exceed long positions, the same principle applies.
3. Don't touch those worthless altcoin contracts. Most altcoin traders are very singular, and the proportion of chips in their hands can absolutely control the market, so control is always in the hands of the project team! Although altcoins may have significant price increases, it also means higher risk. Just look at the coins listed on Binance in the past year—over 90% of them have seen declines exceeding 90% or even more. How will you hold the positions?
4. Mainstream coins are different. Although Bitcoin is managed by globally renowned market makers for market value management, the Bitcoin held by global institutions, exchanges, national governments, and whales is enough to influence market changes. Coupled with policy factors and other influences, contracts for Bitcoin and mainstream coins are relatively fairer!
5. For long-term contracts, never chase high prices. If you haven't acquired chips at a relatively low point, it's better to wait or look for other mainstream coins that may be at the bottom; otherwise, holding positions might take a long time. Therefore, patience is a necessary skill in contract trading! In the past year, going short on the altcoins listed on Binance has become quite easy!
6. Short-term trading requires some professional knowledge of candlestick patterns, in addition to professional knowledge, position control, and managing greed. A calm mindset is especially important!
