Leverage is a double-edged sword; if used well, you will run faster than others; of course, conversely, if used poorly, you will die faster than others.
After playing contracts for a long time, you will find that playing spot becomes very simple. Many beginners hope that one transaction can yield huge profits, turning 10,000 into 1 million, then from 1 million to 500,000, losing 50%, returning to 1 million, needing to double, and then back to zero, just a multiplier.
Thus, beginners are most likely to become self-satisfied, thinking they are exceptionally gifted after making a few profits, and impulsively go all in, only to return to zero. Traders who truly want to survive in the crypto market never put themselves in a desperate situation. From the moment they go all in or heavily leveraged, they are destined to be losers. I hope friends are sufficiently alert in leveraged trading +.
Experienced players choose to stay completely out of the market during uncertain trends and will not rush to act. They enter the market quickly when the trend is clear, and they also enter with small positions, while many ordinary retail investors frequently trade with heavy positions in unclear market conditions, leading to continuous losses. When encountering aggressive major players, the losses become even greater.
Against the medium to long-term trend, holding positions against the market leads to death.
Many people believe that their losses in futures trading are due to the trading period being too long, thinking that trading short-term is fine. However, when losses reach a level that is clearly noticeable in the market.
When needing to stop loss in reverse positions, there is always a psychological struggle: to stop loss or not? Sometimes there is a lucky mentality, thinking the price will come back, leading to prolonged death against the trend. Even worse, inexperienced traders who do not understand the trend hope to average down by adding positions to reduce costs, but later find their positions diverging further from market trends and their own positions, resulting in heavier positions and quicker losses. They have embarked on the first path to death.
Neither over-leveraged nor holding positions, frequent trading, chasing highs and selling lows.
After several twists and turns, the amount that can be cut becomes smaller and smaller, eventually leaving nothing to cut, leading to death. Most reasons for losses and liquidation can be summarized in the above three categories, with excessive greed often leading to over-leveraged positions. For details, see futures trading + the ten major blind spots below.
Full position trading - full position must lose.
Frequent trading - lacking technical guidance.
Trading against the trend - low probability, high risk.
Locking in positions - not accepting the reality of losses.
Lowering and raising the average position price - mistakes compounding mistakes.
Guessing tops and bottoms, not setting stop losses - finding excuses for mistakes.
More long, then short; more short, then long - overly pursuing perfection is aimless.
Trusting rumors and blindly following the crowd - lacking understanding of the market.
Not good at self-reflection, doubting the market - generating fear about the market.
Develop a long-term trading plan + - the future is uncontrollable.
Many times, trading in the crypto market + is like driving on the road.
First, go to driving school to learn how to drive. After learning, if you do not follow traffic rules, accidents will eventually happen. Even if you drive according to traffic regulations, if you don’t hit someone, someone might hit you. There are pitfalls everywhere, so to drive safely, you also need to learn how to avoid them.
These days, I am preparing for the upcoming godly order!!!
Comment 168 on board!!!
Uncertainty brings uncertainty brings uncertainty!!!
Important things must be said three times!!!
