In fact, there are many people in the cryptocurrency world who are not suitable for trading contracts; they are essentially just giving away money.
First, the understanding is inadequate. Many people just think about getting rich quickly; they come in and go all in, or they think about making small profits every day. Those with this mindset will definitely end up losing everything.
Second, the technical skills are lacking. Some people think technical indicators are useless, but the difference between knowing how to use them and not is enormous. People who don’t understand the technology trading contracts are just gambling; whether to go long or short, the probability of winning or losing is about fifty-fifty.
Third, the mindset is poor. After opening a position, they fixate on the charts, wishing there were 30 hours in a day. If the price drops a little, they want to cut losses, thinking about it but not daring to act, so they just hold on, ultimately leading to liquidation. If the price rises a bit, they can’t hold on, always worrying about what to do if it retraces or if they incur a loss, lacking patience.
Fourth, the execution is weak. They open positions randomly without meeting the conditions of technical indicators, and close positions without reaching the stop-loss or take-profit points. Doing this will definitely lead to more losses than gains.
Fifth, the strategy is wrong. When trading contracts, one cannot always think about getting rich overnight, nor can one follow a quick in-and-out strategy. One must focus on trend trades, observe the broader trend, divide the funds into 2-3 parts, and place orders with larger positions. Set stop-loss and take-profit levels, then uninstall the trading software, and stop staring at it all the time.
