I tried playing with the imitation derivatives, but later felt it wasn't viable; it's easy to get tempted and keep opening positions. Although you won't die, you can't withstand the funding rate of once an hour, and I ended up paying a lot of funding fees, even more than the principal I initially bought. In a way, this is how exchanges make money.

Why do they encourage everyone to trade derivatives? Is it to get rich quick? Actually, it's to earn transaction fees because you’ve added leverage, making trading more frequent than with spot trading. Although the funding rate isn't collected by the exchange, it invisibly increases the trader's costs, and of course gives the counterparties a chance to profit, which undoubtedly raises the difficulty level of trading derivatives and the dimensions of strategic thinking.

I believe trading should be a simple matter, not made overly complex with various changing rules and factors! This causes trading to drift away from its essence, spending energy on rules outside of trading itself, so establishing a trading strategy that suits you is very important to reduce unnecessary consumption!

I opened a short position at 106157, with a stop loss at 107214 and a take profit at 105214.

Why did I open a short position at this level?

After the conflict between Musk and Trump, Bitcoin quickly rebounded over the weekend with significant strength, breaking through the 103 level and continuing upward. The upper pressure zone's peak is around 107; we can see that at 106800, it is already at the end of its strength, and from the volume perspective, there is no more energy. If it wants to go up, it will also need to make a retracement to the midline at the 4-hour level before continuing upward, and the point where it touches the midline is the take profit point.

Additionally, I anticipate that U.S. stocks will decline, and Bitcoin will likely follow suit.

At the same time, I predict that the China-U.S. negotiations won't be so smooth, as the representatives excluded by China cannot make decisions, indicating that the negotiations are likely to be unfavorable. The U.S. still takes this matter seriously.

California is in a state of emergency over the immigration issue; will one state in the U.S. affect the market? Yes, this state accounts for over 50% of U.S. GDP, similar to the influence if there were problems in Shanghai, China. (As Luis told me)

Overall, I still see a bearish trend this week; U.S. inflation expectations and consumer confidence are both leaning bearish, and the lack of liquidity in U.S. stocks is a fact.

Let's see if this time I take profit or stop loss!