How to avoid liquidation when doing contract trading? This is the problem that all fans are worried about!
Contract trading and liquidation risk
In the world of cryptocurrency trading, I have experienced six years of ups and downs and know the dangers of contract trading. I have never seen anyone who has never been liquidated in contract trading within a year. This is an indisputable fact.
Leverage and risk
Using leverage, no matter how many times, is accompanied by the risk of liquidation. For example, even if you have a margin of 1 million U, you only use 30,000 U to play 10 times leverage. It seems that the risk is reduced, but the possibility of liquidation always exists.
Robust strategy
When you have enough funds, why take risks in contract trading? The strategy of hoarding coins at the bottom, making grids at the median, and selling at high positions is robust enough to beat most people.
Three types of people in contract trading
People who play contracts can be roughly divided into three categories: stable arbitrageurs, professional sickle big households, and impulsive gamblers. Most people are the latter, and professionals often use the rules of the exchange to harvest them.
The fate of gamblers
The fate of gamblers is often fragile, their future is unpredictable, and they may eventually become victims of the market. Real investors will not pin their fate on luck.
My strategy sharing
I want to share a strategy with a higher safety margin. When Bitcoin and Ethereum fall by 75%, I will invest 50% of my funds as a base position, and of the remaining 50%, 30% will be used for fixed investment, and another 10% of the remaining 20% will be used for fixed investment, and 10% will be kept as cash for emergencies.
Grid trading
I will use 30% of my funds to conduct grid trading between 30,000 and 180,000 US dollars for Bitcoin and Ethereum, so that I can make profits from price fluctuations without worrying about selling out.
Market forecast and response
I expect Bitcoin to start at 60,000 US dollars in the next bull market, and the top may reach 300,000 US dollars. But the market is always full of variables, and we need to respond flexibly. If there is a super black swan event in the market, such as a 50% drop in one day, I will use the reserved cash to respond.
Ares is also ambushing a currency that is about to explode recently, 30% in the short term and 5-8 times in the long term. As I said before, if you come to me, I will take you ashore, and you just lie down.
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Ares will not let my fans miss out in this bull market!This is the truth
