Combining my personal practical experience in contract trading, I have summarized some key points and hope it will be helpful to everyone👇👇
💡 Contract flexibility and risk management:
Spot trading has a low cost-effectiveness, while contract trading provides more flexible operating space. The key lies in reasonable position management and keen control of the market. Gaining profits by holding positions for a short period of time while keeping short positions is also a stable strategy. 📈💥
🧠 Emotional judgment is the core:
In contract trading, market sentiment is a very important reference indicator. Low market sentiment usually brings opportunities to go long, while when sentiment is too optimistic, you need to be cautious about going short. Extreme changes in sentiment often mean that the market will fluctuate, which is the key to capturing opportunities. 😱📉
⛔️ Patience and self-discipline:
The essence of contract trading lies in self-discipline and patience. Being short is not inaction, but an effective way to avoid emotional operations. Whether facing short-term market fluctuations or extreme emotions, staying calm and patiently waiting for clear entry signals is the right choice. 🙅♂️🕰️
📊 Pay attention to market sentiment and liquidation price:
Although technical indicators such as EMA and MACD can help determine trends, in actual operations, the management of market sentiment and liquidation price is more important. When market sentiment is at a low point, it is often a good time to go long, while when sentiment is high, you need to guard against risks. The price fluctuations of the stablecoin USDC can also provide a side reflection of market sentiment, and often show an inverse relationship with the trend of mainstream currencies. 🧙♂️📊
🦸♂️ The trade-off between stop loss and risk control:
Stop loss setting is an important means of risk control, but it also needs to be combined with one's own operating style. Some traders will control the liquidation price instead of stop loss, which requires a strong risk tolerance and rigorous fund management. Setting a reasonable stop loss can avoid losses caused by extreme market conditions and is an important strategy to protect the safety of funds. 🚦📉
🧘♂️ Discipline and calmness are the keys to success:
Contract trading requires strict discipline and not being swayed by short-term market fluctuations. Stay patient, wait for clear trading opportunities, and avoid blind operations. The success of a contract does not lie in frequent trading, but in the balance between accurate judgment and risk control.
Contract trading is an efficient and risky operation mode. Through strict risk control, sentiment analysis and precise timing selection, you can steadily gain profits. Only by managing positions reasonably and staying rational can you find the right opportunities in the market. 🔥🎯