It is difficult for young people to find jobs nowadays. Even if they find a job, they can only earn 4-5K a month. Not only can they not change their fate, but they can't even improve their lives. Most people want to achieve their life accumulation and earn their first small goal through some shortcuts.
No one can accept getting rich slowly, and thinks it is meaningless to be rich when you are no longer young. At the age of 60, you can only rely on a beautiful woman lying in your arms. Therefore, young people are very anxious and eager to get rich all at once.
There are many people here who choose to enter the cryptocurrency circle, hoping to get rich through contract trading!
So, is this path feasible? Internet celebrity Liang Xi once earned tens of millions, but now he is heavily in debt. He can’t use online loans, credit cards, or Huabei anymore. He is in a mess.
You only see the glamour of others who get rich quickly, but you don’t see the exhaustion and fatigue they experience when they are carrying the orders.
01Is it an investment or a gamble?
In contract trading, you use leverage to amplify gains or losses based on your predictions of cryptocurrency price movements.
The existence of leverage is like a double-edged sword. Although it can multiply profits when the market is favorable, it also greatly increases the risk of liquidation.
Many people opened a few small positions and earned dozens of U at the beginning of their participation. They confidently believed that they were possessed by Buffett and could get a share of the market with their wisdom and skills!
When you really start to take on the orders, you will smoke a lot, and have trouble sleeping and eating.
The moment your account is liquidated, you wish you could slap yourself twice.
Why didn’t you stop the loss earlier? You knew the contract was extremely risky, but you were blinded by profit and became a gambler.
Once the market trend goes against investors' expectations, even just 1% may cause you to lose all your money.
The leverage you use may be 50 times or 20 times, so you can only accept a 2-5% fluctuation, which will cause the fund to explode and return to zero.
The seemingly tempting high returns attract countless people to pursue them regardless of the risks.
People often only see the huge profits in successful cases, but ignore the huge risks hidden behind them. Driven by greed, they step into the abyss step by step. Wouldn’t it be nice to use the thousands or tens of thousands of U you lost in the liquidation to live a serious life and travel well?
02Hold the order until you vomit blood
Those highly educated friends around me have good education, jobs and knowledge, stay away from pornography, gambling and drugs, and are considered to be good young people with ambition. But who would have thought that they would also fall into the quagmire of contract trading and cannot extricate themselves.
Once you start to lose money by holding an order, you will not give up. You will keep trying various methods, summarizing your experience and lessons, hoping to embark on a path of stable profit.
And when he went against the trend, he imagined that there would be a retreat.
Many of them are actually not professional financial practitioners, and they don’t even know anything about financial knowledge. They are just attracted by the hype and temptation of getting rich quickly in the cryptocurrency circle.
But in the end, they chose the thorny road of contract trading and were beaten badly by the market.
03Ambition of retail investors
Respect the market and protect capital first.
You want to stand out and bring honor to your family. For people of every class, the market has tools to harvest them precisely.
In the cryptocurrency world, there are many retail investors like this. They generally have a blind self-confidence and overestimate their abilities.
They may agree with the concept of decentralization and feel that they have found their life goals.
Just do it?
When I saw others making money in the cryptocurrency world, I felt that I could do it too, so I jumped into it without hesitation.
They think they have unique insights into the market and can accurately predict price trends, but they ignore the complexity and uncertainty of the market.
In contract trading, they often blindly place orders based on some superficial technical analysis and so-called "news", completely disregarding the risks.
They always think that they are smarter than others and can seize every opportunity in the market, but they don’t know that they have already fallen into a huge trap.
This blind self-confidence makes them unwilling to stop losses in time when facing losses. Instead, they continue to increase their positions in an attempt to recover the losses, but end up getting deeper and deeper into trouble.
04Why is it so hard to get addicted to the cryptocurrency world?
Psychological problems
Psychological factors also play a key role in investors falling into contract trading traps. Greed and luck are the most common.
When investors see the profits in their accounts increasing, their greed will quickly expand. They want to earn more and are unwilling to take profits in time, always feeling that the market will continue to develop in a direction that is favorable to them.
You only earn 200 yuan a day by moving bricks, and one contract wave is a month's salary.
However, when the market trend starts to turn unfavorable, their mentality of hoping for luck will make them think that this is only a temporary correction and that it will rebound soon, thus making them unwilling to stop losses.
The so-called get-rich-quick myths in the cryptocurrency circle have also become their motivation to persevere.
When they see others making tens of thousands from tens of thousands, they firmly believe that they can also become the next lucky person. Even if they suffer losses again and again, they are still unwilling to give up.
This psychological obsession makes them sink deeper and deeper into the quagmire of contract trading, unable to extricate themselves.
The myth of getting rich overnight
You look at the jumping K-line chart. Your principal is 100,000, sometimes it is 110,000, sometimes it is 90,000, and occasionally it is 120,000. If you want to double your money, you can close your position.
The possibility of getting rich instantly is like a strong illusion that makes you addicted. You keep chasing such high returns, and even if you know the risks are huge, you can't resist the temptation.
The large fluctuations in prices make you feel that there are opportunities everywhere, as if you can achieve financial freedom as long as you seize them once.
So, driven by greed, you take the risk to participate in contract transactions again and again, and fall into a situation from which you cannot extricate yourself.
05Contracts are the dealer’s psychedelic drugs and sickles
If you think about it carefully, contract trading has no chance of success for most people. First of all, market uncertainty is an insurmountable obstacle. There are also a lot of human manipulation factors in the market.
In order to gain profits, some market makers and big investors will manipulate market prices through various means, putting ordinary investors in trouble.
Investors' psychological factors also make it difficult for them to remain rational in contract transactions.
Once leverage is used, investors' emotions will be amplified, and greed, fear, luck and other psychological factors will dominate, leading to wrong decisions.
If you insist on playing contract trading in the cryptocurrency circle, the final result may be that you will lose all your money.
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