About My Views on Contract Events There are basically two types of people who play this: the first type is low-IQ gamblers, and the second type is those who harvest gamblers like leeks. Anyone who gets involved with this basically has an IQ lower than that of a sixth grader who hasn't graduated. Feel free to slap my face in the comments section if you can show me over 200 transactions and still maintain profitability. Why am I so confident that playing this has no chance of success? It's simple; I demonstrated it in the last video. It completely lacks the strong logic of a qualified trader, and there is no underlying framework supporting its ability to make money. Therefore, it cannot be profitable in the long run. We come to this market for compound interest, not to gamble.
Today I will teach you how to control the amount of loss per trade. First, many people do not know how much margin is reasonable for each trade. A professional trader usually does not bear more than 1% to 2% of the total capital. Taking this picture as an example, assume you are a breakout strategy trader who believes that the price has broken through the previous high and buys directly, placing the stop loss at the low point of the K bar. Then, the stop loss at this time is 7.76%, assuming I want to use 20x leverage. Here, I must emphasize that leverage is meant to increase the utilization of funds, it is not for gambling. Opening 100x with 1u and 1x with 100u, their contract values are the same. The transaction fees are also exactly the same. So if your position is only 100u and you open with 1x leverage, your fund utilization rate is 100%. And if you only open 1u with 100x leverage, your funds can buy more tokens, that’s all. I digressed, but I still want to say this because it’s my experience over three years of trading.
Assuming you have 10000u, opening 1%, 100u is reasonable, right? If you are willing to bear a loss of 100u with 20x leverage and a 7.76% stop loss,
your margin can only be 64.4usdt. When you hit the stop loss, you will lose 100u.
Teaching everyone a small method for shorting altcoins: First of all, from a long-term perspective, all altcoins are garbage coins and not worth investing in. Even institutional market makers have no faith in altcoins. Many price surges happen only in a wave because institutions have to average down their costs, and they can only build positions at the bottom. So after being trapped at higher prices, they can only pull back to lower their costs, that's all there is to it. But what I'm discussing today is not that macro. Mainly, it's about observing the liquidation map and the market's sentiment. If market sentiment is relatively pessimistic in the short term, funds in altcoins will flee, and at this point, if you anticipate it, you can catch the pessimistic sentiment. Never go long on altcoins because, in the long term, funds will not flow entirely into altcoins. Current funds engage in guerrilla warfare; they strike wherever the hotspots are, and they flee faster than ever. The strong remain strong, and the weak remain weak. In the next video, I will specifically teach everyone the strategies and how to share risks, as well as control the margin for individual positions. I usually short 10-30 altcoins, opening 1-2 USDT each time.