I have grown from a capital of 100,000 to almost 2 million, mainly relying on spot money, but today I want to say something different from others, the heartfelt words of an old leek who has traveled through bulls and bears.
If you want to change your life, please read this
I wonder if you often see the phrase "stay away from contracts and cherish life"?
Everyone who enters the currency circle hopes to find a hundredfold coin or a thousandfold coin. Thinking of the saying that the currency circle lasts for ten years, but today is no longer that era.
If you are an ordinary person without much original capital, and you want to invest in Bitcoin or Ethereum, making big money can change your destiny. In the past, I would have let you buy BTC ETH, and you can also make big money on spot. But now if You don’t have much capital, and if BTC rises to 100,000 dollars, it won’t allow you to completely change your life.
Don't get me wrong, some higher-risk ones may be more suitable for you. The profits and losses come from the same source. The amount of risk you can bear will be the amount of reward.
If you hoard coins in the bear market and sell them in the bull market, can you achieve a hundredfold increase and change your life?
I tell you from personal experience that this is a delusion. Nowadays, the number of currencies in the currency circle is almost more than the number of leeks. Financing projects are being financed one after another. New coins are launched faster than the number of leeks. Financing projects are being financed one after another. , the speed of listing new coins is faster than the growth rate of leeks. Look at the average increase of new coins on Binance and Ouyi. The market value is artificially high when listed, and the valuation is outrageous. Institutions continue to invest in projects and get almost nothing. The cost of chips was constantly sold when they went online to let Leeks take over for them. All the funds in the currency circle were drained by them. The daily transaction volume was tens of billions, and the valuation of a project on the market was 10 billion. The liquidity of the entire market was only Less than 1%, the current severe anemia, perhaps this is the nature of the speculative market.
If you say that many people have become free with the wealth of Tugo, that is a very small number of people. I would not want to touch Tugo. If you do, it is better to study contracts and futures. Even if you leave this circle, there are still many trading targets to choose from. .
In this market you need to be proficient in one skill. There are so many things that can be done in this industry, and unless you have experts around you, it will be difficult to keep up with the pace of the industry. If you want to improve your cognition, the fastest and most effective way is to ask experienced people for advice or through books. Be sure to remember that mastery is the same as mastery. Don't try to grasp everything, otherwise you may not be able to do anything. Of course, please put away your prejudice and laziness, and invest your energy, collect information, and do in-depth research. This is far more important than money.
First of all, we must recognize the situation and ourselves. The purpose of coming to this circle is to change our lives. Please construct a complete plan for yourself. When to buy? Sell? What target to buy, what is the strategy? Risk How to control?
I communicated with friends in the group and repeatedly emphasized that most people can only make trend money.
In many industries, as long as you persist and work hard, you can be at the top, but losing money is normal in the investment market. People who are smarter and harder than you here still lose money. Why should you definitely make money? Investment is to make money with money, and there is too little capital. , it is easy to breed cheating, cheating is not terrible, we must be principled to cheat, since cheating is the one with the highest profit-loss ratio.
What is a trend is that the bull market lasts for one to two years. Make plans during the bull-bear transition time, follow objective laws and data, and be long-currency-based to accumulate your own original assets.
Pay more attention to new projects. People now like new things and new stories. New coins that have just been listed on Binance in the bear market can be circled. Don’t buy them just after they are listed. Spend some time and energy to analyze them from multiple angles. Study them. The research is good, and it is correct to continue buying in batches at this time.
Nowadays, the currency circle is developing very fast, and in this environment, learning needs to be strengthened. Risks and returns coexist. The market has now passed the barbaric growth stage, and potential profits are declining rapidly.
If you want to get rich but don't want to pay too much attention to these, then the only thing left is contracts, and contracts even have more possibilities than altcoins.
In the past, I was like most people who came in. Many seniors told me to stay away from contracts and cherish life, but I have always felt that the currency contract market is a very great product. The currency circle itself is a game of gambling, a game of human nature, a zero-sum game. Since it is a game, we must first understand the rules of the game. The maturity of human investment logic is to constantly understand the rules of the game in this market.
The current currency circle is more speculative. Don't look at things with prejudice, and don't think that you are right. Others are fools. Enlarge your mind and think about problems from multiple perspectives. Everyone has what suits them. Way, Buffett can make money from value investing, and Soros can also make money from speculation. No one is necessarily correct and suitable for you. The best result is the best. Please stop being lazy and spend time and energy to strengthen your trading system. , you will not lose this opportunity to change your destiny again in the future.
Of course, first build a long-term plan and understand the spot bands thoroughly. Please start your contract trading. I think contracts are very good investment tools. Not only can you make money when the market rises, but you can also make money when it falls. It can also be used To hedge the spot, it is your fault that you lose money and liquidate your position in the contract. It is a problem with your system's trading plan. This is not the fault of the contract but the fault of the person who used it. Why should the tool of the contract take the blame for this mistake? Losing money is because you have not established a trading system, have no discipline, have a bad mentality, and do not have a stop loss.
Let’s understand the advantages and risks of contracts. Can we really fight against human nature and not liquidate our positions? I think the currency circle is now a speculative market. No matter how big the market goes, there is a ceiling. Ordinary people can still buy spot products at that time. Is there an opportunity? Some people have little capital. Do you think there is any way to accumulate capital faster in today’s market?
Spot goods
Suppose you only have $1,000 today and the pie is currently $30,000. You think Bitcoin is about to rise. If you buy it with $1,000 and it rises to $36,000, you make $200 because you only have $1,000 and the price of Bitcoin doubles. You just made $200.
contract
Suppose you also believe that the big pie is about to rise by +20%*5, and your 1,000 knives earn 1,000 knives.
Before you start making contracts, you must learn how to manage positions and build your own trading system.
The currency price has been rising for a period of time. Suppose you think that the price will correct in the future and you can go short. Then your income will be the same as above. If it is spot, you can only buy and go up in one direction.
What are the advantages of the contract?
1: Use small things to make big things happen
Theoretically, in the field of contracts, as long as the multiple you open is high, you can expand your small capital countless times. Contracts improve the utilization rate of funds.
In fact, old players will allocate a small part of their positions to contracts in addition to spot prices, but you still don’t want particularly high leverage unless your trading system is very mature. 2: Make profits faster
If you are only spot trading, based on an average increase of 10% each time, it will take 7 times to double the principal of 10,000, but if you open ten times the contract and seize one increase, the principal can be doubled.
Profit=10000*10*10%=10000
Therefore, if you keep an eye on the direction and use reasonable leverage to amplify the increase, your assets will suddenly increase sharply.
2: Hedging the risk of decline
Currency contract trading can not only be long, but also short.
If you hold Bitcoin for a long time and are bullish, you don’t want to clear out all the assets in your hands no matter what. However, the bear market continues to fall. We can increase our currency standard through contract transactions, and we can also make money by going short. There are many big guys who will go short to preserve value. , simply put, when the market falls, the chips in our hands will shrink, but by shorting we can reduce the shrinkage of the chips from the perspective of the gold standard, increase the currency standard, and even make money. When you think that the currency price has ended the bear market and is about to rise, we can flatten it. Just hold the spot and wait for the price to rise.
3: It can be both long and short, convenient and flexible
When the currency market is in a bull market, everything you buy seems to rise, but once you enter a bear market, you will find that even if you buy a big pie, you will lose money. The contract provides a flexible option, not only long, but also short, no matter the market rises or falls. , you can make money regardless of the bull market or the bear market. About risk 1: risk of liquidation
There is no sure way to make money in the world, especially making big money and quick money. Contract trading can amplify profits. There are still many big guys who have succeeded and achieved the counterattack of diaosi. Although many people have liquidated their positions, it is still a game in itself. In the market, if your position is liquidated, it does not mean that others cannot do it. You should work hard on your internal skills. Contracts can make quick money, but you also have to bear the huge risk of liquidation, which is also the biggest risk. 2:Exchange pin
The so-called pin is the technical K line°. A very thin line appears upward or downward. This small line will not affect the spot price at this minute, but the short contract is different because the leverage is enlarged and the amplitude becomes larger. . 100 times as long as 1% will explode.
4: Amplify human nature
Anyone who has played with contracts will probably understand what it is. They clearly looked in the right direction, made a trading plan, discipline, stop loss, take profit, control positions, leverage, etc. During the trading, they all forgot about the stop loss. If you don't execute the order and choose to carry the order, your position will be liquidated. Contracts are also easy to get screwed up, constantly amplifying desires and magnifying leverage. Many people have difficulty controlling their own human nature and cannot follow the trading discipline to integrate knowledge and action. As a result, positions are liquidated and a vicious cycle continues. In fact, the biggest enemy we have to face in trading is ourselves. human nature.
Finally, let’s summarize the difference between the two: spot VS contract
The threshold for spot funds is high, while the threshold for contract funds is low.
Spot is more suitable for conservative people, while contracts are suitable for enterprising people.
The spot has only one direction, and the contract can move either up or down.
The spot price will return to zero if there is no currency standard, and the principal of the contract will return to zero.
I'm just expressing my opinion on the contract, don't comment if you don't like it.
The current liquidity is poor, and the major players in hot money are in the swing band, so it is more suitable to make contracts, and contracts are more suitable for the current market. I am not a contract expert. Trading is my current state. Respecting market rules is my reminder to myself every day. I just want to tell you a different perspective on the contract tool. I can only make trading through my own efforts. Turn it into a business. I hope everyone can build their own trading system, use trading to gain ways to make money, and gain their own success.