In the crypto market for several years, I consider myself to have outperformed 90% of contract traders in the market. I have experienced capital pools, contracts, and arbitrage, and I have also been ruthlessly harvested by the market makers. I have gone through all the pitfalls that the market has to offer.
People in the crypto world can increase their value by 50 or 100 times overnight, or they can instantly lose everything.
Playing contracts in the crypto world is like playing with your heartbeat, thrilling and more exciting than riding a roller coaster.
Have you ever experienced consecutive losses and frequent liquidations?
Then you're feeling frustrated inside, regretting your decision?
I have watched countless tutorials, learned from many traders' summaries, and analyzed numerous reasons for failure! I have summarized the following points, which I believe can help you:
1. Mindset and emotional management
Managing your mindset and emotions doesn't mean you can't be happy when you profit or can't be frustrated when you lose; it means not being an emotionless robot!
Instead, it is about first firmly believing that you will succeed, understanding that the current losses are only temporary, and truly establishing a positive belief system. Secondly, when losses occur, you must maintain a rational and calm mind, avoid blindly placing orders, and be able to analyze correctly and operate rationally, which is crucial!
2. Capital management
There is a saying: 'As long as the green mountains remain, you need not worry about firewood.' You must not have a gambling mentality; it is very dangerous because once you have this thought, in most cases, the market will fulfill you and make you completely give up! You must strictly control this, summarize your maximum consecutive losses to manage your capital, and ensure you have a chance to turn things around. You need to remain extremely calm; as long as you still have chips, you have the chance to be reborn!
3. Technical analysis
This is very important; if you have no technical knowledge at all, then do not place orders, because that is gambling on luck, and you will definitely fail, which is very scary! Learning technical indicators is a gradual process of improvement, but once you overly rely on various indicators for your judgment, you may often be confused, make frequent mistakes, and then doubt the technology. It is crucial to find what suits you among so many indicators and simplify complexity. Common naked candlestick patterns, Bollinger Bands, moving averages, MACD, volume bars, OBV, etc., understand the essence of simplicity!
In short
Perpetual contracts, also known as perpetual futures contracts, are a type of derivative trading method that allows users to go long, go short, or arbitrage through perpetual contracts to achieve trading investment returns many times higher than the initial investment capital.
With perpetual contracts, you can not only make money from price increases but also profit from price declines, and leverage can be used to amplify returns with a small capital.
When trading perpetual contracts, if you incorrectly predict the price trend, you may face liquidation or stop-out, risking the loss of your entire investment capital.