Dear friends in the crypto circle, doing contracts (pure speculation) and investing in cryptocurrencies (similar to venture capital) are two completely different professions. The essence of contracts is trading risk. Or, you could say it's about using risk management and expectations to make money. You must understand this statement clearly when trading contracts.
You can choose not to believe in technology, not to believe in market makers, not to believe in K lines or moving averages, not to believe in BTC, thinking they are all scams, or you can choose to believe in them. These ideological issues will not hinder your ability to make money.
But there is one thing you must understand, and that is [risk]: what is risk, how to control risk, how to calculate risk, how to operate risk, how to withdraw from risk, and how to survive.
You cannot earn money beyond your cognitive range. If you invest in a coin and its value doubles, you earn 100%; then, if you do contracts with 3x leverage and earn 300%, where does that extra money come from, and whose money is it? Do you understand?
For contract trading, the money earned is essentially from managing risk, which is the money given to you by others' losses and liquidations. To obtain this money, first, you must avoid liquidation.
In fact, looking at the market from the perspective of [risk] is completely different from how ordinary people view the market. It's like looking at a mountain from the bottom versus having a panoramic view from the top; they are not the same thing at all. For example, those who buy coins can hold their positions and endure losses with patience, but in contracts, if you hold a position and wait while incurring losses, you are unlikely to survive past the first three episodes. Therefore, operations based on [risk] management are entirely different from those based on [dreams]. In the trading market, dreaming costs money, while those managing [risk] strive to take that money into their hands.
So, do you want to be a [dreamer] or a [risk manager]? It depends on yourself. However, [dreamers] should avoid contracts; trading contracts can shatter dreams built over years in just a few days, and the awakening comes too quickly.
Anyone who has made a lot of money will have a feeling during the process: 'That time was almost like picking up money.' But when your opportunity comes, that is to say when it’s your turn to pick up money, you must be alive and have the capital to do so.
Yes, making money from contracts is not difficult. After all, so many people lose and give away money. They are speeding on the edge of a cliff; you just need to wait at the bottom of the cliff and pick up some parts to survive.
The difficulty lies in the fact that it is inherently counterintuitive; basically, you have to think in the opposite direction of ordinary people's thoughts like 'getting rich overnight'. Whenever you are eager to add positions or open new ones, you should think about what it means to 'go against human nature.'
If buying is like fishing, then doing contracts is like boxing. So, I say it’s normal to have a lot of time with no positions. Waiting, probing retreats, trying again, waiting again… this is the norm for a successful speculator.
In fact, strategies over a period of time are usually quite straightforward, and it can be said that everyone knows them.
For example, on February 14, 2022, many teams' operational strategies involve: shorting most cryptocurrencies while timing long positions on BTC for hedging. The reasoning is not elaborated; just think of yourself as a big player in the circle and deduce from there. This is an absolutely profitable strategy, yet 80% of people still cannot make money from it.
However, such a simple strategy actually contains countless details. For example, the simplest operational principles, why not short directly based on BTC, why shorting is much more conservative than going long, and why the holding time is much shorter. For shorting, how to handle stop-loss, various techniques, and how to short… The stop-loss strategy in contracts needs to be theoretical and worth learning. The value of stop-loss theory is at least worth half of what you invest in contracts. If you can't find it, you must derive a complete set of theories yourself, which means a complete set of operations strictly executed, and there will always be opportunities.
Trading is like this; on the surface, it seems extremely simple, just a buy and a sell (one minute on stage), but countless people have put in a lot of effort behind the scenes (ten years of effort off stage). Overall, this is a profession. It’s not that beginners can’t do it, but you must study and train seriously before you can truly step into the arena.
I often compare flying a plane to speculating. The reason is that the two are quite similar; if you forcefully try to fly a plane without knowing how, the result is likely to be disaster. Similarly, if you forcefully try to speculate without knowing how, you will likely get liquidated.
Risk management and stop-loss management are like the basic skills of flying a plane; with these, you can at least ensure you won’t die. Additionally, the methods for long and short positions in contracts are completely different. This is entirely different from forex, which is the ratio of two currencies; whereas this is the ratio of cryptocurrency to money, and these are two completely different things.
For example, I rarely see this many shifts between long and short positions. The reason for losses is that the way to operate a short position is actually different from that of a long position; the thinking methods are different as well. Short positions generally only profit from a small portion and must be time-sensitive, while long positions are usually limited by quantity and sometimes involve adding positions or considering holding. The entire approach is completely different. Therefore, actual speculation is a professional skill.
If you are new to the market and come to me, I will teach you to learn while you trade. If you are already in it and it’s not going well, you can come to me for help, and I won’t let you make the same mistakes again. If your positions are trapped, I will provide reasonable strategies to free you based on your entry points. Since everyone has different entry points, the methods to get out will also vary; some methods suit conservative traders, while others suit aggressive traders. I will definitely use the most suitable methods to genuinely solve your problems and assist you in exiting.
