In the crypto market over the years, I believe I've outperformed 90% of contract traders. I have experience in capital pools, contracts, and arbitrage. I've also been ruthlessly harvested by market makers and have gone through all the pitfalls the market has to offer.
People in the crypto world can see their investments increase by 50 times or 100 times overnight, but they can also lose everything in an instant.
Playing contracts in the crypto world is thrilling and more exciting than riding a roller coaster.
Have you ever experienced continuous losses and frequent liquidations?
Then you feel frustrated and regret your decision?
I have watched countless tutorials, learned many traders' summaries, and analyzed numerous reasons for failure! Here are a few points I’ve summarized that I believe can help you:
1. Mindset and emotion management
Managing your mindset and emotions doesn't mean you can't be happy when making profits or feel down when facing losses. It's about being a robot without emotions!
Rather, it’s about firmly believing in your eventual success, understanding that current losses are temporary, and developing a positive belief system. When losses occur, it's crucial to maintain rationality and a calm mind to avoid blindly placing orders, allowing for correct analysis and rational operation.
2. Capital management
There’s a saying: 'As long as the green mountains remain, one need not worry about a lack of firewood.' You must not have a mindset of going all-in; this is extremely dangerous. Because once you have such thoughts, in most cases, the market will prove you wrong and leave you utterly disheartened! You must strictly control this and summarize your maximum consecutive loss occurrences to manage your funds, ensuring you have the chance to turn things around. This requires extreme calm—only with remaining chips do you have the opportunity for rebirth!
3. Technical analysis
This is very important. If you lack any skills, you should absolutely avoid placing orders, as that would be gambling on luck, and you will inevitably fail—this is very scary! Learning technical indicators is a gradual process, but once you overly rely on various indicators for judgment, you may find yourself confused and making frequent mistakes, leading to doubts about the techniques. It’s vital to find what works for you among the many indicators to simplify the process. Familiar indicators include naked candlestick patterns, Bollinger Bands, moving averages, MACD, volume bars, OBV, etc. Grasping the essence of simplicity is key!
Long story short
Perpetual contracts, also known as perpetual futures contracts, are a type of derivative trading method. Users can use perpetual contracts to go long, short, or arbitrage to achieve trading investment returns many times higher than their initial investment.
Through perpetual contracts, you can not only make money from rising prices but also profit from falling prices. More importantly, you can use leverage to amplify returns from a small amount of capital.
When trading perpetual contracts, if you incorrectly predict the price trend, you may face liquidation and the risk of losing all your invested capital.
