From entering the cryptocurrency circle with 5 to making 10 million, then to being in debt of 8 million, to making 20 million, to now achieving financial freedom!
I mainly mastered contract techniques; trading in the cryptocurrency circle is like playing with heartbeat, thrilling, even more exciting than riding a roller coaster.
Today, I will share a free summary of my years of trading experience, hoping it can help everyone!
A thousand times contract may seem risky at first glance, but it is actually the most profitable and has the highest winning rate among my investment varieties. Initially, I was quite confused about this, but then I gradually understood.
This is mainly due to my unintentional adherence to a set of clear trading rules:
1. Total position setting: The funds I use for contract trading are always fixed; for example, the funds of one account are always 300U. This means my maximum loss is 300U, and once the market trend is favorable, I have the opportunity to gain tens of thousands of U in profits. This setting allows me to keep risks controllable while seizing the profit opportunities brought by big market movements.
2. Initial amount: The amount I initially trade is always very low, based on the philosophy of stock trading giant Livermore. He believed that if you start off correctly, it's best to start making money right away. Therefore, the amount I initially test the waters with is always very small; even if the total position is 300U, the initial amount is often just single or double digits U, ensuring that I am in a profitable state at the beginning of trading.
3. Position increase strategy: I only use profits to increase my position when there is profit and the trend is obvious. This strategy allows me to further amplify profits when the market trend is favorable while avoiding increasing risks in an unfavorable market environment.
4. Stop-loss setting: I will adjust the stop-loss position in a timely manner based on market conditions to ensure that I do not lose my principal. This is an important principle I adhere to in trading; it helps me remain calm during market fluctuations and avoid emotional trading decisions.
These four rules have unknowingly made me strictly adhere to trading discipline, and the logic behind them is equally applicable to ordinary low-leverage contracts because the reasoning is the same. Of course, before starting, I still want to remind novice players:
Contract trading is not child's play, especially for those who think there are some contract techniques or masters who can predict prices. Don't blindly believe that you can make big money just by listening to them; such thoughts should be avoided at all costs. I certainly do not have any secrets that will make you rich just by hearing them.
Moreover, contract trading is a severe test of human nature. Unless you can stick to using very little money, such as 100U or 300U, only then does it conform to the strategy of 'small bets for big wins,' rather than 'big bets for small wins.' What I share is a method, hoping to provide some reference for contract players, and nothing more.
What types of contracts are there:
Perpetual contracts: Perpetual contracts do not have an expiration date, and users can hold them indefinitely and perform their own closing operations.
Delivery contracts: Delivery contracts have specific delivery dates, including this week, next week, this quarter, and next quarter delivery contracts. When the specific delivery date arrives, the system will automatically deliver regardless of profit or loss.
USDT margin contracts: This means you need to use the stablecoin USDT as collateral. As long as there is USDT in your account, you can engage in contract trading for multiple currencies, and the profit and loss are settled in USDT.
Coin-based margin contracts: These are contracts that use the underlying currency as collateral. You need to hold the corresponding currency before trading, and the profit and loss are settled in that currency.
