Below are some simple insights I would like to share about my experience with contracts.
1. Always maintain a stable mindset. When I first started trading contracts, I divided my ten thousand dollars into five parts, with two thousand dollars each. I would operate on one part at a time. During the lowest point, I lost four parts and told myself that if I lost the fifth part, I would stop trading. The last part must be handled with caution.
2. Always summarize your experiences. From the four parts that I lost in the beginning, the lesson I learned is to never be greedy. This is a common issue. The first time I saw the contract cryptocurrency I bought increase fivefold and hesitated to sell, the next day it plummeted and got liquidated. I regretted being greedy.
3. Learn to take profits and cut losses in a timely manner. Set a target. I usually select two cryptocurrencies from popular sectors or among the top 10 in trading volume to trade. I typically look to buy when the price is down 5%-8% from the value at 10 AM that day, and I will withdraw once I double my investment.
4. Reserve enough margin. Trading contracts can lead to liquidation, so please make sure to reserve enough margin. Generally, I will reserve one-third of the margin to withstand some minor fluctuations.
5. Lastly, I usually take three-fifths of the profits I make from trading contracts to buy the spot of platform tokens or other mainstream cryptocurrencies, while the remaining amount continues to be invested in contracts. Buying platform tokens is to increase my risk resistance.