Next month, start following trades; simulate for 3 months; it's risk-free.
Q: Since you are so skilled, why do you still charge for copy trading?
Even the most skilled trading involves earning risky money; charging for copy trading earns risk-free money.
The two concepts are different; although the former amount is much larger than the latter, no one dislikes having less money. Moreover, trading is destined to be a one-way street; respect the market; risk-free money is the last safe haven for yourself.
Q: Since you chose to do contracts, why do you divide the contract money into three parts and only use one part?
1. When there is no continuous earning ability, the speed of losing 1 million and losing 10,000 is the same. When you have continuous and stable earning ability, the speed of making money with 10,000 and 1 million is also the same.
2. My mentor said to consider defeat before victory; this market is full of surprises. By only taking one layer of position, you can have two extra chances to recover when surprises occur.
3. A small amount allows you to maintain a good mindset, reducing the times you fight against emotions and human nature, and at least you can sleep well at night.
Q: What does a 10x single position mean?
The meaning of a 10x single position is that the contract opens at 10x, and the position is one-tenth.
In fact, the number of times in contracts is not that significant; the key is how many times your position is compared to your margin.
For example, you deposit 300U into the contract account, but each time you open a position, your holding amount is only 300U, then you are actually fully leveraged at 2x.
So one layer of position is equal to one times the total margin, and a two-layer position is two times. We generally open positions based on layers, not multiples. Each of our trades is usually 1-3 layers.
Q: What is the difference between opening a single position and spot trading? Why not just buy spot?
1. Spot trading cannot be shorted, while a single layer of contracts can be shorted.
2. Now is the end of a bull market, with very high volatility; even a single layer of position can earn money; for example, we often earn several tens of points. In a bear market with reduced volatility, we will consider increasing our positions.
3. Although each trade opens a single layer of position, you can open 2-3 trades, so the total position won't be low, and you can spread the risk.
Q: Why do I need to transfer profits out every time I make a profit? Isn't it better to reinvest the profits?
Although compounding earns a lot when it's good, once it goes wrong, the losses at stop-loss can be much greater. What if an extreme market condition arises and all your hard work for months goes to waste?
No one can guarantee a 100% win rate; learning to defend and controlling drawdown is more important than offense.
As long as you ensure that when you earn, you earn a lot, and when you lose, you lose little, you can make money steadily and continuously.
Q: Shouldn't we consider compounding to increase the principal?
When steadily earning 4 times the profit, you can increase your principal to 150%.
For example, if you initially plan to use 900U for contracts, then use 300U for trading. When you make 1200U with 300U, your total amount will be 1200U + 600U = 1800U.
At this time, you can then take another 450U for trading, and so on.
Q: Why do I need to transfer money from spot to contracts to cover the losses every time I lose?
For example, if you lose 50%, you need to earn 100% to break even. The difficulty of the two is not on the same level, so after covering the loss, you only need to earn 50% to break even. Don't add extra difficulty to yourself.
There is still the profit transferred out earlier; if luck is not on your side, and you lose money on the first trade, there is still money for two positions outside.
Q: What does 'slow is fast' mean?
You are Xiaoming, making money every month; it seems like picking up money in the contract market, continuing for half a year, a total of 100 times, full of confidence but reluctant to transfer the money out, thinking the larger the principal, the better, earning enough to stop when reaching 9 digits.
Suddenly, there was a time when the market went wrong, completely opposite to your judgment. Thinking about your 100% win rate and impressive record, you believed the market would correct itself, but in the end, you got liquidated. Six months of effort went to waste, earning not a penny and wasting time.
You are Xiaoqiang, every time you make a profit, you transfer the profits out. Although your principal is a bit smaller and you earn a bit slower, every time you profit, you earn more due to the broader perspective, and when losing, you lose less because of decisive stop-loss.
The win rate is not great, but the risk-reward ratio is very suitable, and the profit curve is slowly increasing, although it's a bit slow, after half a year, I've made 5 times. One time, you realized you made a mistake but held on to a lucky mindset, and without knowing how, you canceled the stop-loss and chose to hold the position.
In the end, you got liquidated, but fortunately, you transferred money out each time, only losing half of your principal, and you still have 4 times the profit left.
Who do you think earned more after half a year, Xiaoming or Xiaoqiang? If the above two models keep repeating, who will be the winner in the end?
In this market, you never know when surprises will come. Sometimes you might not have done anything wrong, but suddenly an extreme market condition arises, or unfavorable news comes out. It could also be that you're distracted, arguing with a partner, and your mood affects your trading.
No one can guarantee they will never make mistakes like a robot; besides reducing the frequency of mistakes, it is more important to control losses within a certain range when mistakes do happen.
Don't let yourself become that person who thinks making money is the process, and going to zero is the end. Immersed in the process, wasting time but achieving nothing.
Q: After saying so much, don't you just want to earn my money?
That's right, people tend to seek profit and avoid harm. I won't do anything that doesn't benefit me. If you have doubts, just follow a model for 3 months, and after 3 months, the outcome will naturally be revealed.
But perhaps one day, I find other models more profitable, or when funds reach a certain scale that affects the market, I won't do this anymore. On the trading path, everyone is destined to accompany each other for a period of time. My mentor ignored me after teaching me for a year, cherish every moment.
