1. I just saw a piece of data. In the contract market, 30 billion yuan of positions were liquidated in the last month.
You say there is no money in the cryptocurrency world? Who would believe it? The tens of billions of dollars of liquidation are only the funds in the contract. The cryptocurrency financial market is not lacking in funds, but in synergy, especially the synergy of rising prices that cryptocurrency investors yearn for.
Why do margin calls go bankrupt? Small funds are taking risks, and so are large funds. Some people say that large funds seek stability, and only small funds that want to accumulate wealth quickly will open high leverage and high positions.
It's a joke at first glance. Those who pursue a sudden increase in wealth never distinguish between the size of funds. Let's make an assumption that 1 million coin holders have entered the contract market. 30 billion is equivalent to 30,000 liquidation funds for each coin holder. This is the calculation under the condition that all coin holders participate in the contract and all contracts are liquidated. Recently, the liquidation of long positions accounts for more than 90%. If all positions are liquidated, who will short?
It can be inferred from this that not all those whose positions were liquidated are cryptocurrency investors.
The liquidation of tens of billions of dollars at least illustrates one problem: operators with 5x, 20x, or 100x leverage are ready to be liquidated at any time, regardless of the size of their funds.
Second, I carefully read a lot of comments. Some fans still have a clear understanding, but more people commented like this:
1. I'm out of bullets.
2. It keeps falling and there is no hope.
5. Afraid of losing but wanting to make money, chasing rising and selling falling, often opening long positions at the highest point and short positions at the lowest point.
4. Keep waiting and you will end up missing out.
5. Lack of courage and determination, always hesitant and indecisive in transactions.
There are probably five reasons why people are afraid to grab cheaper chips.
In fact, these mentality are too normal and have always been my mentality. I guess this is also the reason why people in the currency circle call themselves leeks.
The first four reasons above are all cognitive factors of contract investment, and the fifth is due to the fear of difficulty caused by lack of cognition. If the cognition is sufficient, courage and boldness will naturally emerge.
Yesterday, I talked about two reasons why people were afraid to buy after the currency market crash: human fear instinct and the perception of contract speculation. In other words, in addition to psychological reasons, the most important thing is that they have not established their own contract operating system.
Therefore, the key to achieving the investment state of "I am greedy when others are fearful" is to establish your own set of contract practice system.
3. "What you trade is not the market, but the ideas about the market."
This concept is your investment operating system. However, how difficult is it to establish a contract practice system?
Before establishing an investment system, you must have your own investment philosophy and a clearer understanding of yourself, such as interests, goals, knowledge and experience, skills, and ability limits.
There is also your own investment strategy, when to buy, when to buy, what coins to buy, how to buy, how to arrange funds, how to allocate positions, etc.
Finally, you also need a strategy for error correction. What should you do if you make a mistake? Should you exit with a small loss or hold on to the order?
Seeing all these questions, I guarantee you will be overwhelmed. My God, investment is so difficult to learn. There are so many rules and regulations, knowledge and theories. Even if you learn them, you may not make money!
Excellent investment masters say that to build your own investment operating system, you must go through at least two bull and bear cycles: the first bull and bear cycle is to establish the operating system, and the second bull and bear cycle is to verify and correct your operating system.
The stock market has a bull-bear cycle of 6-10 years, while the currently recognized bull-bear cycle in the cryptocurrency world is 4 years. You might be shocked to think that it will take at least 8 years to build your own operating system. At this rate, you might have starved to death.
That's true. This means that one can consciously build his own investment operating system. Some retail investors have never built an investment operating system in their entire lives.
4. In fact, I have established many investment operating systems.
The currency valuation system, the buying system, the selling system, the currency selection system, the holding time system, etc. The only difference is that in the past, we operated the stock market and foreign exchange, and now we operate the currency market.
Due to human nature, it is really not easy to establish a complete investment system, and there is no guarantee that it will work.
Coincidentally, in the past six months, I have successfully achieved 4 contract liquidations in the currency market contract operation. This is simply a miracle in my life.
Every time after the liquidation, various reasons and reasons are found, and they also imitate the complaints of the majority of Leek currency investors: Who allowed it to repeatedly insert pins and waterfalls into the door?
One day, I suddenly had an epiphany: to hell with operating systems, they were too complicated. I only needed one trick to guarantee that I would be able to make a fortune from now on, make a lot of money, and never get liquidated.
5. There are only two reasons for a contract to be liquidated: the leverage is too high and the position is fully occupied.
Benchmark and position are two aspects of position management: if you want high leverage, your position must be extremely low; vice versa, if you have low leverage, you can have a higher position.
However, there is no need to blame the market for reaching its limit, or complain about the market rising and falling too violently. The outside world has nothing to do with us. We only need to look after our own capital and make absolutely safe arrangements.
The market will always rise or fall sharply at some point in time. The safest strategy is to put yourself in a safe. You can open the safe occasionally to breathe fresh air, but don't expose yourself to the fire of short or long parties.
Therefore, extremely strict position management is the core of contract trading.
For example, if BTC is currently 67,000U, and you keep the forced liquidation price of your contract at 54,000U, the probability of liquidation in short-term or intraday operations is extremely low. However, remember not to carry orders + cover positions against the trend for a long time, because the final result may be that the ant position becomes a large position, so as to prevent one-sided market conditions.
Isn't there a saying that goes, "As long as the green mountains remain, there will be no shortage of firewood"? I won't blow up your position, so you have the guts to fight.
There is a friend in the cryptocurrency circle who has been maintaining half-positionism for many years, or dynamic half-positionism. This is the case for spot trading, let alone our contracts? Therefore, this old friend is a real master, and his operation is the highest level of investment.
Even people like Buffett, who lead the world's investment community, keep hundreds of billions of dollars in cash. Why don't we who play futures contracts do a good job of strict position management?
So, after dying four times in the contract battlefield, I realized that the only secret to playing contracts is position management.
