From losing millions to earning tens of millions a year, how did I do it?;
After experiencing liquidation more than ten times, I began to summarize my past experiences into lessons that I hope will be helpful to everyone;
We all know why contracts are so attractive: because high leverage brings you immense profits while also carrying the risk of going to zero; when you see the digits in your account jumping around repeatedly, do you feel the rush of dopamine flooding your brain!
The first step to avoiding liquidation: Control leverage reasonably; high leverage is tempting but can also be dangerous! I recommend that you trade mainstream coins according to my suggestions:
Small funds with high leverage (100X 75X) and large funds with low leverage (5X 10X);
Second: Set stop-loss and take-profit: Before each operation, set the stop-loss within an acceptable loss range; if you make a mistake on a trade, it's acceptable and won't affect your next steps!
Third: Diversify funds and control positions:
Do not invest all your funds in a single trade; control the position of each trade to be within 5-10%; if you're more confident, a position of 10-20% is fine, but remember not to exceed 40% of the position!
Although contract trading is full of opportunities, the risk of liquidation is everywhere! By using low leverage, strictly setting stop-losses, managing positions reasonably, and maintaining a calm mindset, you can significantly reduce the risk of liquidation!
I hope the above experiences from Dong Ge are helpful to everyone! Follow the rhythm, see the logic clearly, and you can secure profits in the market; if you don't know how, I'm always waiting for you!
Everyone, remember: Protecting your principal is always the first principle of trading!!!