In a bull market, should I trade spot or contracts?
Spot is slow, contracts are fast, but they come and go quickly, and there are people who get liquidated every day.
In a bull market, spot trading is more suitable for most investors. Although contract trading can magnify profits due to its leverage effect, it also magnifies risks, especially in the case of volatile market conditions, which can easily lead to liquidation or large losses. Spot trading is relatively stable, and holding assets can enjoy the benefits brought by the increase in value, avoiding forced liquidation caused by short-term corrections. In addition, spot trading has no time limit, is suitable for medium- and long-term holding, and can better grasp the overall upward trend in the bull market. For most investors, in a bull market, choosing spot trading can not only achieve steady growth, but also reduce the psychological pressure caused by market fluctuations.
The most taboo in a bull market is to adjust positions back and forth, always keep an eye on the trend, and have a bad mentality. It is difficult to eat enough meat.