Speculating on cryptocurrencies with contracts is a leveraged way of speculating on cryptocurrencies, which can easily lead to investors' positions being blown up in extreme market conditions. The higher the leverage of investors' cryptocurrencies, the more coins they can buy with less money, the greater the risk of their positions being blown up, and at the same time, the higher their profitability. For example, if Xiao Li's leverage is 10 times, then after he makes the wrong move, the price of the underlying asset fluctuates by 10%, and his loss rate reaches 100%, i.e., a position being blown up; Xiao Wang's leverage is 5 times, then after he makes the wrong move, the price of the underlying asset fluctuates by 20%, and Li Si's loss rate will reach 100%, i.e., a position being blown up. In short, it is best for investors not to touch contracts when speculating on cryptocurrencies, set stop loss and take profit, and track and observe changes in the market in a timely manner. When the market changes in the opposite direction, close the position in time to reduce losses, rather than just holding on to it.
A while ago, Kuang Ren had the honor to drink tea with a big man in the currency circle and talk about the currency market. His words shocked me deeply. It turned out that he had blown up his position because of a contract within three days, and his loss was as high as 50 million yuan. This experience was undoubtedly a profound lesson for him. Looking back on my own journey in the currency circle, it was also ups and downs. From the initial 6,000 yuan to catching up with the bull market and making millions; then from a millionaire to a downtrodden man with a debt of 8 million due to the contract blowup; then with 200,000 to make a comeback, the assets increased to 20 million; then from more than 20 million to the current A9; and now, I am waiting for the arrival of the next round of bull market, the goal is to achieve 10 small goals. Hundred-fold contracts, at first glance, seem to be full of risks, but in fact they are my most profitable and highest winning investment products. At first, I was quite confused about this, but then I gradually realized it. This is mainly due to the fact that I inadvertently followed a set of clear trading rules:
1. Total warehouse setting: The funds I use for contract trading are always fixed. For example, the funds of an account are always 300U. This means that my maximum loss is 300U, and once the market trend is favorable, I have the opportunity to obtain a lucrative profit of tens of thousands of U. This setting allows me to keep the risk under control and seize the profit opportunities brought by the big market.
2. Starting amount: My initial trading amount is always very low, which is based on the philosophy of the stock tycoon Livermore. He believes that if the beginning is right, then it is best to make money from the beginning. Therefore, the amount I start with is always small. Even if the total position is 300U, the initial amount is often only single-digit or tens-digit U, which can ensure that I am in a profitable state at the beginning of the transaction.
3. Position-adding strategy: I will use profits to add positions only when there is profit and the trend is obvious. Such a strategy allows me to further amplify profits when the market trend is favorable, while avoiding increasing risks in an unfavorable market environment.
3. Position-adding strategy: I will use profits to add positions only when there is profit and the trend is obvious. This strategy allows me to
Further magnify profits when the situation is favorable, while avoiding increasing risks in an unfavorable market environment.
4. Stop loss setting: I will adjust the stop loss position in time according to market conditions to ensure that I will not lose my principal. This is an important principle that I adhere to in trading. It helps me stay calm in market fluctuations and avoid emotional trading decisions. These four rules have made me strictly abide by trading discipline, and the logic behind them also applies to ordinary low-multiple contracts, because the principles are the same. Of course, before I start, I still want to remind novice players: contract trading is not a joke, especially for those who think there is some kind of contract technique or contract master who can predict prices. Don't blindly believe that you can make a lot of money just by listening to them. Don't have this idea. Anyway, I don't have the kind of secret that can make you rich as soon as you listen to it.
In the bull market, we must not miss any opportunity to make continuous profits. If you are eager to turn over your position, eager to make a big profit, and eager to get your money back, then please follow Du Ge's steps and plan for the upcoming bull market together! Du Ge will do his best to help you realize your dream of turning over your position in the bull market and make your investment journey easy and enjoyable!
