"I didn't even use the full 5x leverage, how come my account got liquidated in 3 days?" said Zhang, a veteran investor in the cryptocurrency circle, with a wry smile. But surprisingly, after experiencing several liquidations, he now makes a stable profit every month from contracts. How many people really understand the tricks here?

Speaking of leverage, I don't know how many people have been deceived by this number. The platform shows 5x or 10x, which looks conservative, but in fact it has little to do with your real risk. The key to risk lies in your stop loss setting and the actual investment funds.

So how do you play it? In a market like the cryptocurrency world where fluctuations are 20% at any time, it is safer to invest 10-20% of the principal each time. Long orders can use up to 4 times the principal, and short orders should be more conservative, controlled within 2 times. Many people would say when they hear this: "How can you make money if you are so conservative?"

But you have to think clearly, the essence of playing contracts is managing risks, not betting on the rise and fall of coin prices. What you earn is actually the money that others lose when they blow up. There has never been a shortage of opportunities to make money in the market; what is lacking is the ability to survive until the opportunity comes.

Let me say something offensive, contracts are not for most people to play with. If spot trading is fishing, then contracts are fighting in the boxing ring. Every punch has to calculate the risk, every step can be knocked down. Waiting, testing, retreating, and trying again, this is the norm for experts.

The hardest part is actually not the technique, but fighting against human nature. When you see others crazily going long and making money, you have to be able to keep your composure; when the market is in panic, you have to dare to go against the trend; when you really want to open a position, it is often the most dangerous time.

Thinking question: Why can you easily earn 10%, but always blow up at 30% profit?

Total trading is not accurate, confused and not knowing how to operate, wanting to keep up with learning requires one condition: strong action ability, just do it, like + comment, I will help you make big money!