A rather cruel reality is that many people are still in the stage of “how to play contract leverage trading”, “how to get started with contract trading as a novice”, “what are the contract trading skills”, etc. All they want is to use contract leverage operations to quickly add tens of thousands of words after 1,000, and they can’t wait to get started. Don’t you think it’s normal to have a margin call?
Players claim that there is only one outcome to playing contracts, which is to get liquidated and lose all the account assets. I hold a different view on this.
From a practical point of view, this statement seems to be fine. Many people who play contracts have experienced liquidation, but how many people have explored in depth the specific circumstances of those who played contracts and liquidated? How did they play? With what attitude? How did they operate? The thought process before and after the order was opened and liquidated, etc., have been ignored by many people.
Playing contracts can indeed bring high returns in the short term, but it is also accompanied by certain risks. If you want to successfully conduct contract transactions and double your assets while avoiding liquidation, you must master certain investment skills and internal abilities.
Keep improving your inner strength. If you rashly invest heavily in contracts without any preparation, isn't it expected that your position will be blown up? What's so strange about a position being blown up?
Here are 5 ways to improve your inner strength:
1. Learn and understand the relevant knowledge of contract trading in detail and in depth: understand the basic principles of contract trading, trading mechanisms, risk management strategies, etc.
2. Make a clear and definite trading plan: Before starting contract trading, make a detailed trading plan that covers investment objectives, risk tolerance, fund management strategies, etc. Strictly follow your own plan and do not blindly pursue high returns greedily.
3. Risk control and capital management: allocate funds reasonably, do not invest all funds in one contract transaction, set take-profit and stop-loss points, stop losses in time to control risks, abide by risk management rules, and do not take excessive risks.
4. Track market dynamics and information: Keep abreast of market changes and related news, understand market trends and conditions, and make appropriate investment decisions by using tools such as technical analysis and fundamental analysis.
5. Control your emotions and mentality: In high-risk contract transactions, it is extremely important to control your emotions and mentality, not be greedy or fearful, and maintain a calm and rational attitude in the transaction.
Some practical experience on how to avoid liquidation of contracts; there are no unchanging rules and techniques, the market is ever-changing, and we need to remain constant in the face of ever-changing situations.
The risk of contracts is inherently higher than that of spot;
Overcome human weakness and avoid greed;
The contract operation of altcoins cannot be done at will, and shorting altcoins requires prerequisites;
The choice of contract multiples is very tricky and should be made according to different situations;
When it is time to act, be earth-shattering; when it is time to not act, be as solid as a rock. Take good care of your right hand, or maybe your left hand;
For players with small capital, choosing contract operation is a good choice, which can indeed double the assets in a short period of time; avoiding liquidation is the primary task of contract players, and the result of liquidation is the end of contract players.
The operation of contracts requires all-round talents and a strong knowledge base as a driving force. It is definitely not as simple as some people imagine, that is, to go long if the market is bullish and to go short if the market is bearish...
Every time you open a contract, you must think about the possibility of a margin call and make corresponding preparations to prevent it. It is impossible to guarantee a profit on every contract, but there are ways to prevent a contract from being liquidated.
There are risks in contract trading, which all players are aware of. However, there are some people who have never made any money from playing contracts and even call themselves angel investors. Investors must have a certain level of knowledge and experience.