Female fans asked: Why do I always lose money when doing contracts?
To answer this question, we must first know that contracts are leveraged, which increases the multiple of our funds, and the risk is also increased. But this is also a double-edged sword, a good helper for small funds, and at the same time, it is a weapon for retreating from the circle.
Contract losses are nothing more than the following reasons.
First, I have seen many old irons operate, and there is simply no trend. If they see too much rise, they go short, and if they see too much fall, they go long. They open orders based on their feelings. Although they may be right occasionally, they must lose money overall. If the market trend is short, you must go long. Who else will you lose if you don’t lose?
Second, why do you still lose money even if you see the right trend? That’s because the entry position is also very important. For example, in a downward trend, you can only find a relatively high point. For example, if you are doing swing trading, you must find a high point within 4 hours to go short. For long-term trading, you must look at the daily level, instead of chasing it when you see a decline. If you chase it halfway up the mountain, the profit will be reduced, and the risk will increase. You may turn from profit to loss at any time.
Third, some of our friends are so big-hearted that they don’t set a stop loss. Once they enter the market, they start to fantasize about making money. A good stop loss is the prerequisite for a good contract. For example, ETH's high point for the day was 2490 and now it is 2482. Our stop loss point is 10 points above 2490. The space is the support position, which may be 30 points or 50 points. Only with such a small stop loss and big profit can the overall funds grow slowly upward.
The fourth is that the mentality is not good. When the stop loss and stop profit positions are reached, they are not executed. There are fantasies. The fluctuation of an order makes oneself very anxious. The mentality changes with the change of funds. I always want to get rich with one order. If I lose, I am eager to get back the capital. If I make money, I relax my vigilance. Frequent operations lead to losses.
There is a 50% chance to open a short or long contract, but as long as the above 4 points are done correctly, the probability of success can be increased to 80%. When you are 80% sure of opening an order, will you still lose money?
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