How to avoid liquidation in contract operations?
In fact, I have tried to build multiple operating systems. I have meticulously designed valuation models for cryptocurrencies, criteria for buying and selling, strategies for filtering cryptocurrencies, and plans for holding periods. Whether in the stock market or the foreign exchange market, I have invested my efforts into operations. Now, I bring these experiences to the cryptocurrency space, hoping to find my own path to success here.
In the past six months, I encountered five liquidations in contract operations. This was undoubtedly a heavy blow for me and a miraculous experience in my cryptocurrency career. After each liquidation, I tried to find various reasons and explanations, just like many retail investors, complaining about the market's volatility.
But one day, I suddenly realized as if enlightenment struck me. I began to realize that an overly complex operating system may not be what I truly need. I started to think about whether there is one strategy that could help me break free from the troubles of liquidation and allow me to navigate the cryptocurrency space more calmly.
Thus, I found my answer - stringent position management. Although this approach is simple, it contains profound investment wisdom. It allows me to remain calm in the face of market fluctuations and avoid falling into difficulties due to excessive leverage or heavy positions. I believe that as long as I can strictly implement this strategy, I will be able to go further and more steadily on the road of investment.