#ETH Managing contract positions and multiples well, with strategy and a good mindset, makes liquidation impossible. Don't just jump to 100x contracts; a few points can easily cause liquidation. Control your hands, learn some strategies; actually, doing contracts is very simple and not as wild as others say.
Contracts refer to bidirectional trading, not just simple leverage. The cryptocurrency contract trading market has many big players, many celebrities, but very few veterans. Learn the following points to 'let liquidation go to hell':
1. Position obsession
The itch that can't be scratched and the panic that can't be controlled—crazy to seek opportunities when out of position, and overly cautious when in position. Trading is not clocking in for work; 'overtrading will only lead to chronic blood loss.'
2. Long and short kill trap
Frequent all-weather trading, wanting to be an all-rounder—after going long, going short, and vice versa. Although the self-discipline is strict, this contradicts the importance of going with the market trend. When there's no force breaking the opposing one, don't have the thought of going against the trend. In a bull market, it's long - close long - more long - close long; in a bear market, stick to short - close short - more short - close short.
3. Dancing on the edge syndrome
'Catch a falling knife will bleed—grabbing a rebound can become addictive.' True experts only pick up knives lying on the ground, waiting for the market to catch its breath before entering; they last much longer than those betting on reversals.
4. Decision paralysis crisis
False breaks are like thorny roses, but when the trend starts, only those who dare to bet in inertia can get the whole fish. Remember, missing out doesn’t cost money; chaotic trading is deadly.
5. Main force watching position mentality
Everyone has had this experience: when you go long, it drops; when you short, it rises; if you cut your long position, it still rises; if you cut your short position, it drops. Sometimes luck is crucial in BTC, and the main force doesn't need your hand. Close the computer immediately and come back to trade calmly after cooling down.
6. Full position trading
A wealth rocket can take you to the sky but can also crash to the ground instantly—institutions can't withstand black swan attacks, let alone flesh and blood? 30% is the safety line, 50% is the life-and-death line; don’t let your account become a gambling table.
7. Stubbornness, never admitting mistakes, not knowing to resolve wrong positions immediately, causing mistakes to persist. The consequences are predictable. I just don't believe it won't rise; I just don't believe it won't drop. When admitting you are wrong, don't have a lucky mindset; decisively cut losses at the first moment.