Is contract trading really gambling? Are you still misunderstanding it this way?
Many friends, without anyone guiding them,
often go for 50x or even 100x leverage,
putting money in, only to be liquidated overnight!
There are two types of people who use high leverage:
First: those who like to take big risks with small amounts, who enjoy high-stakes betting, essentially gambling!
Second: there are also beginners who don't know how to operate or plan their positions, and end up finishing before they even start!
Managing positions in contract trading is very important, maximizing capital efficiency,
and also avoiding personal risk.
How to manage positions scientifically in contracts?
Flexible use of funds: for example, if you want to open a position of 10,000 USDT, you can use 1,000 USDT at 10x leverage, or 500 USDT at 20x leverage.
Stop loss at 1%-3%,
using 10% of your funds to aim for a 100% return, while keeping losses manageable.
If you use 10,000 at 10x or 20x leverage...
a sudden market movement could wipe you out, with no margin for error, no principal for trial and error, leading to complete losses and a distorted mindset!
Using high leverage to borrow funds several times more than your own principal for speculative activities, liquidation is common, while making money is rare. If you want to use contracts, first understand the basics, such as leverage multiples and funding rates; if you know nothing and get liquidated, don't blame the tool for harming you.
So it’s essential to reasonably plan your positions!
For friends who are currently losing on trades, if you don't have a good circle or insider information from the crypto world, then I suggest you follow me, find me, and this bull market will help you get back on track, welcome to join the team!!!