Many people brag about using 5x or 10x leverage, but they really don’t understand leverage!
Leverage is not calculated this way! The leverage ratio of the platform has nothing to do with our players’ risk control. The real leverage depends on your own capital and stop loss point.
The volatility of crypto is terrifying, so you have to take it easy and only use 10% to 20% of your capital to open a position each time. The total amount of your positions should not exceed 2 to 4 times your capital.
And you have to set a stop loss point, with a maximum loss of 20% of the principal. If you can't bear it psychologically, you have to lower it further.
Some people say what's the point of playing contracts like this? I tell you, if you want to make money playing contracts, you have to survive first!
Trading contracts is a completely different matter from investing in coins. Contracts involve risk and earn money through risk management, which is essentially the money you get from others liquidating. But you must remember, to earn that money, you must first avoid getting liquidated yourself.
Looking at the market from the perspective of risk is completely different from how an ordinary person sees it. An ordinary person buys coins and just holds on, hoping they will rise again.
But if you do this in contracts, you would have been long gone by now. Trading contracts requires strategy, risk management, and patience. You have to wait for opportunities, probe, retreat, try again, and wait. Successful speculators spend most of their time waiting.
To be honest, making money from contracts isn’t difficult because there are always people liquidating and handing out money, but the hard part is that you must go against human nature and say goodbye to the idea of 'getting rich overnight.'
Whenever you want to increase your position or open a new position, you have to remind yourself to stay calm and go against human nature.
Playing contracts is like being on a boxing ring; you need to have your own set of strategies and theories. For example, many people are currently shorting most coins and timing their long positions on BTC as a hedge.
This strategy seems simple, but it has a lot of details; you need to learn about stop-loss theory and have your own operating principles. All of this requires learning and training, not something a novice can just jump into.
I would liken it to flying a plane; flying a plane and doing this are actually quite similar. If you cannot fly a plane and force yourself to do it, you’re just looking for death.
If you insist on doing it without knowing how, you will end up liquidated. Risk management and stop-loss management are like the basic skills of flying a plane. Once you learn these, you can ensure that you won’t die in a very ugly way.
So if you want to make money trading contracts, first learn risk management, then talk about making money. Don’t always think about getting rich overnight; that will only make you die faster!
The opportunity is about to arrive. In the upcoming layout direction, I will guide everyone to aim for the lucrative opportunities in altcoins, expecting a return of more than 10 times is not a problem. Like and comment, and I will take you through the entire bull market!
$SUI $USUAL $DOGE
