Hi guys, I’m trader Zhu Yici. Tonight in the live broadcast of Binance Square, I exchanged views with senior trader @币毒 on the choice between contract and spot models.
BiDu explained from the perspective that the contract is just a tool to magnify funds and improve fund efficiency. As a tool, there is no good or bad contract. The decisive factor lies in the person who uses it. For small funds, this is a financial tool that is very helpful for increasing the scale of funds. In advance, you need to have a mature and stable trading technology system, including but not limited to position management and strict stop-loss execution.
My point of view is more based on the actual situation. Most people cannot grasp the contract tool well. It is a double-edged sword. It magnifies profits while magnifying losses. It has a low tolerance rate, and the higher the multiplier of the contract, the more so.
Secondly, the people who master this tool are even more unreliable. They are prone to irrationality, emotionality, and even fatigue, which will affect trading decisions and execution. I compare contract trading to walking on a tightrope. Standing on flat ground and standing on a tightrope high in the air are completely different, both in terms of mentality and actual risk factors.
So for ordinary people, I directly suggest not to touch the contracts, especially if you have a certain amount of capital. Use spot to do big cycles. The process is not important. The key lies in the result you get in the end. If the cycle no longer exists, the entire market is finished. The spot will return to zero, and the contract will eventually return to zero. It's like the world is destroyed, and everything is meaningless.
I have been committed to spreading trading concepts suitable for ordinary people. The simplest principle is to buy low and sell high, and then you make money. It is so simple. Don't envy the so-called dragon-slaying skills. Ninety-five out of a hundred books of this kind are fake, and the remaining five require countless efforts and costs before you can practice them. The suitable one is the best.
I have no objection to using contracts to grow small capital. For those who want to grow small capital over time, the actual returns are too low, and the input and output of time costs are inefficient. But you have to understand that you have chosen the hell mode, and you must accept the consequences and face it calmly.
Finally, it’s time to canvass for votes. There are only 8 hours left for voting. If you feel that this article has inspired you, please cast a vote for me @Crypto交易员朱一旦 and @币毒 . Click on our names to enter the homepage and vote. Thank you very much!