Is contract trading really gambling? Are you still misunderstanding it like this?
Many friends, without anyone guiding them,
easily use 50x or even 100x leverage,
and just as their money goes in, they get liquidated overnight!
There are two types of people who use high leverage:
First: those who like to bet big with small amounts, who enjoy high-risk gambling!
Second: there are also beginners who don’t know how to operate or plan their positions, and end up finishing before they even start!
Position management is very important in contract trading to maximize capital efficiency
and to mitigate personal risk.
How to manage positions scientifically in contracts?
Flexible use of capital: for example, if you want to open a position of 10,000 USDT, you can use 1,000 USDT with 10x leverage, or 500 USDT with 20x leverage.
Set a stop-loss of 1%-3%,
using 10% of your capital to aim for 100% returns, while losses are kept within control.
If you use 10,000 with 10x or 20x leverage...
a sudden market movement could take you out, with no margin for error, and no capital for trial and error, leading to easy total losses and a distorted mindset!
Using high leverage to borrow several times your own capital for speculative activities, liquidation is common, while making money is rare. If you want to use contracts, first understand the basics, such as leverage multiples and funding rates; if you know nothing and get liquidated, you can’t just blame the tool for harming you.
So it’s essential to plan your positions reasonably!
For friends who are still losing trades, if you lack a good circle and don’t have firsthand information from the crypto world, then I suggest you follow me and find me; this bull market can help you reach shore, welcome to join the team!!!
