First of all, you need to know the most basic trading experience. A market decline is not necessarily a bad thing. Instead, it gives you the opportunity to enter the market at a low price. You can take advantage of this opportunity to stock up on cheap chips, or exchange those weak currencies in your hands for strong currencies. If you know how to manage your positions, a decline is a good opportunity for you to make money. Buy low and sell high, and after a few rounds, you will get the profit. The key here is that you have to grasp the rhythm of trading and know what to do.
If you encounter a currency that has not risen, it is the right thing to do to sell it as soon as possible. Don't always think that it can come back to life, that will only make you sink deeper and deeper. Why does it keep falling? You may not know the reason, but the fall is the most direct warning. Trading should be simple and direct. Buy when it rises and sell when it falls. Just follow the market. In my opinion, mentality is more important than technology when trading. Only when your mentality is stable can you analyze calmly and make decisions.
People need to be rational when trading, and this is especially true. Sometimes, even though you know you are wrong, you just don't repent, such as stopping losses, always thinking that you may be able to come back after waiting a little longer. But trading is against human nature, you have to overcome your weaknesses and make the wisest choice. Only rational people can have the last laugh!
By the way, let’s talk about contracts. This is something that many newbies will come into contact with. Contracts are not gambling, but some people use a hundred times leverage right from the start and lose all of it overnight. This is not speculation, it’s simply reckless operation.
There are two types of people who open high leverage. One type is the old hands who like high-risk operations, who like to take small risks and are addicted to all-in, which is the mentality of a gambler. The other type is the novice, who knows nothing about position management and risk control, and loses money before he understands the contract. Position management is very important when playing contracts. You have to use your money flexibly. For example, if you have 10,000U, you can use 10 times leverage with 1,000U, or you can use 20 times with 500U. But you have to set a stop loss line for yourself, such as 1%-3%, so that even if you lose, it is within your tolerance.
If you use 10000U to open 10x or 20x leverage directly, the risk is too great. After a wave of market conditions, you may lose everything, not even the chance to try and make mistakes, and your mentality is easily broken! So if you want to play contracts, you must first understand the basics, such as leverage multiples and funding rates. Playing contracts requires planning and managing positions. Don't rush in all at once, or you will end up losing everything!
In terms of spot, I plan to find some potential coins and hold them until the end of the year. The expected space is more than 10 times, so there will be no problem. Friends who are interested in spot or contracts are welcome to communicate with me.
