When trading contracts in the cryptocurrency space, the most important thing is not to open the first contract; if you make money, you will feel like making money is quick and want to continue; if you lose, you will also want to recover, and continue playing, resulting in deeper entanglement.
But this is not the answer you want; everyone tells you not to play, yet you feel like the chosen one, thinking you can control your emotions, trade rationally, manage your take profit and stop loss, and become a big winner in life.
You must experience a loss before realizing that trading contracts can indeed lead to losses; regretting it later will lead to no remedy.
In simple terms, theoretically, the following are several situations to pay attention to when trading in the cryptocurrency space.
①Risk Management+
Leverage Selection+: Contract trading usually offers high leverage (such as 10x, 20x, or even 100x), which can amplify gains but also magnify losses.
It is advisable to choose an appropriate leverage based on your financial strength and risk tolerance; beginners should start with low leverage.
Also set stop-loss orders+, as the market is highly volatile, setting stop-loss can effectively control losses and avoid account liquidation.
Also, do a good job of position management+, do not invest all your funds at once, and diversify positions to reduce the risk of a single trade.
The cryptocurrency market trades 24 hours a day and is highly volatile due to news and technical factors. When trading contracts, always pay attention to market dynamics.
②Market Volatility+
Avoid being liquidated by sudden 'spikes' or 'waterfalls'.
It is recommended to avoid excessive trading before and after major events (such as the Federal Reserve's interest rate hikes or regulatory policy announcements), as the market may experience abnormal volatility.
③Ensure Fund Safety
Platform Selection: Choose a reputable, well-regarded trading platform with regulatory background to avoid small platforms going bankrupt or manipulating the market.
Cold Wallet Storage+: Keep non-trading funds in a cold wallet as much as possible to reduce platform risks.
Beware of scams: Do not trust 'signal groups' or 'insider information', many are scams.
④Improve Psychological Resilience
Avoid FOMO+ and panic: Market sentiment can easily affect judgment; do not chase highs due to short-term surges or panic sell during drops.
Control greed: Take profits in a timely manner after earning a certain profit, rather than continuously increasing your position in pursuit of greater returns.
The above are four key points to pay attention to when trading contracts, but theoretically it is said this way; in practice, it is different, too easy to get carried away, leading to quick gains and losses.
Almost all contract players eventually end up at zero.
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Comment 33, get on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things should be said three times!!!
