Do you know how to safely leverage when trading contracts? This article will help you understand leverage again.
1. The biggest risk of leveraging: liquidation. You should improve your prediction level - it's impossible to predict black swan events, which is not completely feasible; reduce the leverage multiple - events where prices drop by 50% have happened in the past and will happen again; set stop losses - feasible, but slippage can be very damaging. Withdraw profits in a timely manner and only use a small portion of funds for contracts.
2. While it is impossible to predict the arrival of a crash, I will definitely know when it happens, so the safest way is to leverage after a crash.
3. Many people have issues with leveraging because they start without leverage, increase leverage only after a price increase, and then face liquidation.
4. Build strong defenses and play conservatively - the method with the highest win rate. Even in a bull market, there are often four to five deep corrections of 25% or more in a year. Use time to gain space, defend to attack, and use the simplest methods to fight the smartest battles.
5. Every time you open a position, you must have a stop loss. Every time you open a position, you must have a stop loss. Every time you open a position, you must have a stop loss.
6. Gradually increase leverage: Forwards: spot trading, plant scarce seeds when the market is full, actively sell in a bull market, and save ammunition for a bear market; Midfield: off-exchange leverage, prepare in advance for rainy days; Defense: on-exchange leverage, don’t go in too early or too hastily; opportunities will always arise, leverage gradually.
Here’s a recent profit chart from a fan who followed my trades for less than two months, with positions growing from less than 2000 USDT to nearly 16,000 USDT, a 7-8 times increase.
For friends who are currently confused about trading, comment '111' and this bull market will help you get rich.