Contracts, those who play well can make a fortune, and those who play badly can go bankrupt and run away!
Contracts, with the effect of leverage, will make people infinitely magnify their greed, which is also their weakness in trading.
It's not that everyone plays badly, but that the mentality cannot be controlled. Always thinking about the overnight explosion of all-in, this can only be said to be completely gambling.
Many technical players actually have correct analysis, but why do they always lose money when they trade? Have you ever thought about this problem?
In fact, the reason is very simple, the analysis is not equal to good trading!
For example:
Bitcoin is currently priced at 23,000 US dollars
Xiao Ming and Xiao Hong, through technical analysis, agreed that Bitcoin would rise to 25,000 US dollars, that is, a 10% increase
However, in terms of trading operations, Xiao Ming and Xiao Hong are different
Xiao Ming is fully invested in 20 times leverage, Xiao Hong is fully invested in 5 times
In the end, Bitcoin really rose to 25,000 US dollars, but only Xiao Hong made money!
The reason is that, on the eve of the rise, Bitcoin fell from 23,000 to 21,000, and then rose to 25,000 US dollars.
When it fell, Xiao Ming had a full position with 20 times leverage, so theoretically, a 5% drop would cause a liquidation.
Xiao Hong had a full position with 5 times leverage, so theoretically, a 20% drop would cause a liquidation, but Bitcoin only fell by 10%, so Xiao Hong did not have a liquidation.
This is the difference in doing contracts. It is useless to analyze. The most important thing is the details of position management, risk control, and leverage.
If you want to make money in the contract market, first of all, you have to ensure that you can survive and don't get out of the market with a liquidation.
If you want to seize this round of bull market, it is definitely too late to learn and sell now. It is best for someone to take you to get started quickly.
I am Mr. Z, welcome to communicate!
