Having been in the crypto space for several years, to be honest, I have seen too many tragedies of "always losing upon opening, precise liquidations." 😅
Is this often the case? You spot a trend, confidently open a position, and then when you come back from the restroom, your position is gone!
Contracts, to put it simply, are about using small amounts of money to control large positions. It sounds appealing, but essentially, it’s leverage! 🔍
Leverage amplifies your profits while also amplifying your risks! Originally, you could interact with the market, but once you play contracts, it's a winner-takes-all situation!
For example, if you have 100 dollars and open a 10x leverage position, it's like controlling a position of 1000 dollars. If the market rises by 10%, your profit doubles! But if the market moves against you by 10%, sorry, you get liquidated, and your account goes to zero!
The contracts market is a zero-sum game; every dollar you earn is a dollar someone else loses, and vice versa. This is not a battle among retail investors, but a game between retail investors and large funds!
What really drives the market are the big players and institutions! They don't care about short-term fluctuations; they focus on the stop-loss points in the market! They wash out small players first, then decide whether to rally or crash the market.
When there are too many long or short positions, large funds will use the volatility to trigger the liquidation points of leveraged players! After a batch of people are passively forced out, they will then come back to control the market and move to their rhythm!
Thus, newcomers are often the first to be washed out. Why? High leverage makes it hard to sustain positions, making them the most vulnerable to being harvested!
If you want to survive in the cryptocurrency space, remember one thing: Don't trade for profits, but trade for safety!
If you want to achieve stable profits, first set aside your eager desire for immediate success and fantasies of overnight wealth!
⚡️In fact, trading in the cryptocurrency contracts market can be said to have the lowest costs.
If it's stocks, one contract costs a few hundred, and losing once can mean tens.
If it's futures, one contract can cost thousands, and losing once can result in hundreds lost.
In the cryptocurrency contracts market, you can open a position with just 1 USDT, or even 0.5 USDT. If you set a 3% stop loss, you may only lose a few dollars.
With such low tuition, what's the rush?
When you do not have stable profits, you should be wary of the high risks and potential for liquidation in contracts.
When you can achieve stable profits, you should be thankful for the large fluctuations and high returns that contracts provide.
So to succeed, you need to achieve stable profits.
As someone who has been through it, let me tell you: In trading, the technical aspects boil down to learning patterns, candlesticks, and technical indicators.
Is this difficult? If you master these techniques, you can make money; then the top students would all be trading experts.
In fact, in futures, the most important thing in the cryptocurrency space is experience.
This experience includes: mindset and how to handle market conditions. How to reconcile with yourself during losses, and how to boost your confidence during profits. If you are still confused and don’t know how to manage positions, including setting stop-loss and take-profit points, feel free to discuss.
📈Playing around in the cryptocurrency space is essentially a struggle between retail investors and big players. If you don't have cutting-edge information and first-hand data, you can only be harvested! If you want to collaborate and harvest with the big players, feel free to contact me!
There is a saying that I strongly agree with: The boundaries of knowledge determine the boundaries of wealth; a person can only earn wealth within their boundaries of knowledge.
You must maintain a good mindset when trading cryptocurrencies. Don't let your blood pressure spike during a downturn, and don't get carried away during a surge; securing profits is crucial.
For those without many resources, being grounded is the unbreakable way to survive; good luck! $ETH
