It is inevitable that a contract will be liquidated. No one will count the number of times they have been liquidated. The risk factor of the contract is controlled by your desire.
Don’t pursue a permanent profit strategy for contracts. The only permanent profit strategy for contracts is to be a banker and become an exchange.
For participants in the secondary crypto market, there are two core aspects of perpetual contract strategies.
1Try not to blow up your account
2. Don't step down after the explosion
There is no permanent profit strategy for contracts. All the contract-leading masters in the market do not have technical indicators that outperform others. The reason why contract masters stand out is in terms of position management and mental fortitude.
They will do everything possible to avoid liquidation.
At the same time, do not leave the table after the margin call.
When making a contract, you must first understand who is making the money?
The essence of the contract is a competition between long and short positions, and the exchange only charges a handling fee (I won’t talk about the fake exchanges and the dark history of some exchanges here)
The profits of the multi-army and air force,
All of them are obtained from the other party’s liquidated and floating loss accounts.
Therefore, if you want to make a profit from contracts, you must first do everything possible to avoid liquidation. Why don't I say 100% avoid liquidation? The answer is that it is impossible, because of the extreme volatility, such as 519,413. You can never predict when it will appear. Once it hits, if the direction is wrong, the liquidation is 100%, and even the smallest contract position will be buried.
Therefore, in addition to avoiding liquidation as much as possible, you must also be able to withstand multiple liquidations. Some contract players can withstand five liquidations in a row under extreme market conditions, which allows them to slowly recover when most of their teammates have run out of bullets.
First, let’s talk about how to avoid a margin call.
Two key words, small warehouse and warehouse by warehouse.
There is no uniform size standard for small positions here. Maybe 300u is a heavy position for you. For some people, 300,000u is a light position.
It is recommended that the investment in a single contract should not exceed 10% of your account funds, and do not trade multiple positions frequently. Any profit loss from a few round trips will be contributed to the exchange.
Don't go all in, don't go all in, don't go all in. Contracts are easy to get carried away, the market changes rapidly, and no one can predict the short-term market. No one can accurately perceive when the next 8.5 market will appear.
The most terrifying thing about the 8.5 market is that if the contract is reversed once, there is no recovery.
Mature contract players use strategies to protect against the biggest market fluctuations.
For example, strictly control the execution of stop-profit and stop-loss. You can even choose not to stop-profit, but you must learn to stop-loss. In addition, avoid investing in full positions with high leverage. Sometimes, luck will not always be with you. Mature traders rely more on strategies to make profits, rather than simply relying on market conditions.
The market can make a lot of money.
Strategies survive.
Finally, let me summarize my thoughts on contract strategies.
1Try to avoid liquidation, choose light positions and position by position.
2. Do not leave the table after a margin call and control your position investment.
3. Stop loss, stop loss, you don’t have to stop profit, you must stop loss
