I see many respondents say they are using 5x or 10x leverage, which is already quite small.

I am really speechless. In fact, I want to tell you, you are all wrong.

Leverage is not calculated this way at all. The leverage rate calculated by the platform has nothing to do with you; it’s almost the share ratio that affects the platform's safety. You should calculate risk based on stop-loss or adequate principal.

With such large volatility in crypto, you should open positions in equal segments, about 10-20% of your principal each time. The total position limit should be about 2 (short) to 4 (long) times your principal. At the same time, the overall stop-loss risk should be kept within 20% of the principal (or your psychological actual bearable range must also be less than 20%). It is recommended to average the risk at 10%, meaning that there are times when you are in cash... Some may ask, then why do contracts at all... Hehe... I might offend the entire crypto circle by saying this, but do you really want to earn coins or make money? Is there a more flexible speculative tool than contracts? Is USDT really useless? In the face of a bear market, which is safer, coins or USDT? When you spend money, do you spend coins or USDT?

Dear friends in the crypto circle, trading contracts (pure speculation) is completely different from investing in coins (similar to venture capital).

The essence of contracts is trading risk. Or rather, using risk management and expectations to make money.

When trading contracts, you must clarify this statement.

You can choose not to believe in technology, not to believe in the market makers, not to believe in candlestick and moving averages, not to believe in BTC, and think they are all scammers. You can also choose to believe in them. These conceptual issues will not hinder you from making money.

But there is one thing you must understand, and that is [risk]. What is risk, how to manage risk, how to calculate risk, how to operate risk, how to withdraw from risk... how to survive...

------- You cannot earn money beyond your cognitive range... Originally, if you invest in a coin and its value doubles, you earn 100%; but if you trade contracts and make 3 times, the result is a 300% gain, where does that extra money come from? Do you know?

—— For contract trading, the money earned is actually from risk management, from the money that others lose and are liquidated, and to get this money, first, you cannot be liquidated...

In fact, looking at the market from the perspective of [risk] is completely different from how ordinary people see the market. It's like looking at a mountain from the bottom compared to looking at it from the top; it's not the same thing at all. For example, those who buy coins can hold their positions waiting for a rise and endure losses, emphasizing patience... But for contracts, if you hold your position waiting and endure losses, you probably won't survive the first three episodes.

Therefore, operations based on [risk] management are completely different from those based on [dreams]. In the trading market, dreaming costs money, while those who manage [risk] strive to get that money.

So, do you want to be a [dreamer] or a [risk manager]? It depends on yourself. However, [dreamers] should not play contracts; trading contracts can shatter the beautiful dreams built over years in just a few days, and waking up that quickly is too much.

Anyone who has made a lot of money will have a feeling during the process: "That time was almost like picking up money." It's almost the same, but—when your opportunity comes, that is, 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, there are so many people getting liquidated and giving away money. They are racing on the edge of a cliff; you just need to wait at the bottom and pick up some parts to get by.

The difficulty lies in the fact that it is inherently counterintuitive; basically, you have to go against the common person’s thoughts like "getting rich overnight." Whenever you are eager to increase your position or open a position, you should think about what it means to [go against human nature].

… If buying coins is fishing, then trading contracts is stepping into a boxing ring... So I say it's normal to have plenty of time with no positions. Waiting, testing, retreating, trying again, waiting again... this is the norm for successful speculators.

In fact, strategies over a period of time are almost straightforward and can be said to be known by everyone.

For example, now on February 14, 2022, many teams' trading strategies are to short most coins while timing to long BTC as a hedge.

There's not much to say about the reasons. Imagine yourself as a big shot in the coin circle, and then deduce from there. Such an absolutely profitable strategy leads people to trade contracts, but 80% of them can't make money.

And such a simple strategy actually contains countless details. For instance, the simplest operational principles, why not short directly based on BTC, why shorting is much more conservative than longing, and the holding time is much shorter. When shorting, how to handle stop-losses, how to short various technical coins... The stop-loss strategies for contracts need to be theoretical and worth learning. The value of stop-loss theory is at least worth half of what you invested in contracts. If you really can't find it, you need to derive one yourself (that's what I did; I found someone who wasn't willing to teach, so I derived a set myself). A complete set of theories means a complete set of operations, and strict execution will always present opportunities.

Trading is like this; on the surface, it's an extremely simple buy and sell (one minute on stage), but countless people have put in the effort behind the scenes (ten years of effort offstage)... Overall, this is a profession. It’s not that novices can’t do it, but you have to learn and train seriously before you can truly step onto the field.

I often compare flying a plane to speculating. The reason is that these two are quite similar; if you force yourself to fly a plane without knowing how, the result is destruction and death. If you force yourself to speculate without knowing how, it will inevitably lead to liquidation.

And risk management, stop-loss management, is like the basic skills of flying a plane. With this, you can at least ensure that you won't die.#以太坊连续两日领涨 $BTC