Contract Trading: A Dangerous Game of Human Nature!
In the cryptocurrency market, contract trading is like a tempting gold mine, attracting countless prospectors every day. However, the entrance to this gold mine is already piled high with the corpses of those who have been liquidated.
Why do so many people still gamble their life savings even when they know the risks are immense? Behind this lies the eternal human weaknesses and the secrets of wealth in the financial market.
1. The Double-Edged Trap of Leverage
Beginners are often misled by the "safety" of 5x or 10x leverage, not realizing that the real risk of leverage depends on two key factors: the stop-loss margin and the proportion of capital. Experienced traders understand that each position should not exceed 10%-20% of their capital, total exposure should be controlled within 2-4 times leverage, and single stop-loss must be strictly limited to within 20% of the capital. More importantly, most of the time, one should maintain a flat position; like a lurking cheetah, waiting for the best moment to strike.
2. The Art of Risk Management
The essence of contract trading is not to predict the market, but to manage risk. In this battlefield, technical analysis, market movers, and candlestick patterns can all be disregarded, but one must penetrate the meaning of "risk." True professional players have a precise risk calculation formula: they clearly know how much they might lose on each trade, how much they might gain, and whether this risk-reward ratio is worth taking.
3. The Truth of the Blood Market
When someone uses 3x leverage to amplify a 100% return to 300%, the extra profit comes from the liquidation funds of other traders. This market always follows the jungle law of "every success is built on countless failures." To survive in this game, one must first ensure they do not become "the fuel for liquidation."
In this battlefield without gunpowder, new wealth myths are born every day, as more accounts reach zero. The harsh truth of contract trading is that it offers everyone equal opportunities, but does not guarantee equal results for all. Those traders who ultimately survive all understand a profound truth!
In this market, controlling risk is more important than pursuing profit; staying alive is more urgent than making money.
The cryptocurrency world has never been a battlefield of technology, but rather a hellish arena of execution. Like, save, and follow Wen Ge, in the next bull market, I will help you tear open the seams of wealth!
