When I see those bloggers saying that using 5x or 10x leverage is already very conservative, I am truly amazed by these people!
Leverage is not what you think it is! The leverage multiple marked by the platform has nothing to do with us retail investors; that's for the risk control department to calculate margin. What we really need to calculate is the risk ratio of throwing real money into the fire pit!
When playing with Bitcoin and these volatile things, you should approach it like an old gambler entering the game: each time, bet a maximum of 10-20% of your principal, and the total position should not exceed 2x (short) to 4x (long) of your principal. Keep an eye on your account at all times; in the worst-case scenario, you should only lose about 20% of your principal before you decide to cut your hands off—personally, I think it’s best to keep the risk under 10% on a regular basis, and when there’s no market, just stay in cash and lie flat... At this time, there will definitely be someone jumping up and down: then what's the point of trading contracts? Haha, to say something that might offend the entire community—are you here to make U or to hoard coins? When the bear market comes, are you sleeping on USDT or air coins? Can you use ETH to pay for groceries?
Contracts and hoarding coins are completely different things, just like the difference between boxing and fishing. Trading contracts is like licking blood off a knife edge, making money from others' liquidations! Whether you believe in market manipulation or believe in the mystical K-lines, none of that affects making money. But if you can't understand how to write the two characters for 'risk,' liquidation will teach you a lesson in no time.
For example: if the spot price doubles, you earn 100%, and if you open a contract at 3x, you earn 300%—where does the extra 200% come from? It's robbed from the accounts of those unfortunate souls who got liquidated! If you want to be a reaper, you must first ensure that you are not harvested.
The perspective on risk is completely different from that of retail investors; it's like the difference between viewing the scenery from the top of a mountain and counting ants at the foot of the mountain. Those who hoard coins can play dead and hold their positions, but if contract traders dare to hold their positions, the exchange will cut your connection in no time. Trading contracts requires you to act like a secret agent on a mission; before opening a position, you must find a retreat route and decisively cut losses without batting an eyelid when necessary.
Those who really make big money in contracts have all experienced this: when the market comes, it's like bending down to pick up money. But the premise is that you have to survive until then, and you must have bullets left in your account! Why do so many people get liquidated? Because they all think about driving luxury cars and living in villas; can you not crash while racing on the edge of a cliff? What we need to do is set up a net at the foot of the mountain, waiting to catch the parts that fall from the sky.
The most counterintuitive part of this industry is this— the more you rush to recover your losses, the more you need to hold your hands. Every time you think about going all in, give yourself a slap: only the retail investors go all in; the experts know to leave some room for themselves.
Let me share a high-profit strategy you can use now (even though the market has already changed): short altcoins in the early bear market and hedge with BTC. With this simple trick, 80% of people still end up losing badly! Why? Because just knowing the direction is useless; position management, stop-loss levels, and which altcoin to short are all knowledge. Just the stop-loss part alone can fill a textbook; back then, I begged everyone for help but no one taught me, so I ended up figuring out a set of survival secrets with real money.
Trading seems simple; isn’t it just buying and selling? Actually, it's just like flying a plane. A newbie who doesn't know how to read the instrument panel will force a takeoff and ultimately crash. Risk control is your instrument panel, and stop-loss is the escape pod—first learn to save your life, then think about how to make money.
In short, the contract market is just a professional casino. Newbies can play, but you must first pay enough tuition to become an experienced player. Don't believe those 'get rich overnight' nonsense; earnestly learn about stop-losses and practice position control to survive in the crypto battlefield and collect money.
The market never lacks opportunities; what it lacks is someone to help you seize those opportunities.
Keep up the speed!
Focus for the day: OM SUI SOL FUN BTC
