B Circle Entry Requirements
Read this before deciding whether to engage in contracts
"To new players wanting to try contracts: This is the most honest confession, read it before deciding whether to engage!"
Contracts are not investments; they are more like a zero-sum game.
What are contracts? Simply put, they are bets on the rise and fall of cryptocurrency prices using a small amount of money. You may only use $100 to control a position worth $10,000. When you guess the direction correctly, your profits will be amplified; but when you are wrong, your losses will also be amplified until your principal goes to zero. It's like dancing on the edge of a cliff, where every step could lead to catastrophe.
The 3 most common mistakes made by beginners:
* Heavy betting without regard for risk: Beginners love to gamble everything with the highest leverage and maximum capital. When they win, they feel like geniuses, but when they lose, they are devastated. True contract experts never put all their chips in one basket.
* Frequent trading, chasing highs and cutting losses: The joy and pain of contract trading lie in its "speed." When you see price fluctuations, you can't help but enter the market, resulting in alternating between long and short positions, which drains your fees.
* No stop-loss, relying on luck: This is the deadliest mistake. When your position starts to lose, you think, "Just wait, it will go back up." The result is waiting until liquidation, losing everything. A stop-loss is not a sign of defeat but a way to protect your principal, ensuring you have a chance to fight another day.
Words of wisdom for beginners:
* Learn to protect your principal first, then talk about profits. Treat contracts as a "high-level dungeon" in your investment career, not your only game. Start with a small amount of capital, even using a demo account to practice and feel the market's volatility and pressure.
* Always maintain a learning attitude. Understand the cryptocurrencies you are trading, learn about technical analysis, and grasp market sentiment. The path of contracts has no end, only traders who continuously evolve.
Finally, I want to say that contracts are not the devil, but they will amplify your human weaknesses. If you do not have enough discipline, a strong mindset, and learning ability, please stay away from them. $BTC