For a gambler, a contract is like online gambling. You earn 10,000 a month, and in the contract, he can earn 10,000 by using 1,000 times leverage and increasing the price by one point. What about 10 points? That is 100,000. He only needs a few minutes to earn nearly a year's salary...

Some people will say, if the direction is wrong, won’t it all be lost? Now use your reverse thinking to think that he can lose 100,000 yuan if he is wrong nine times, but he only needs to be right once to make a profit.

In the cryptocurrency world, the increase in price is 1-2% in one second in extreme market conditions. If you are lucky, you can earn a month's salary in one second and a year's salary in a few minutes.

Monthly salary: 3,000 yuan, 36,000 yuan a year, 1.44 million yuan for life

Monthly salary: 4,000 yuan, 48,000 yuan a year, 1.92 million yuan for life

Monthly salary: 5,000 yuan, 60,000 yuan a year, 2.4 million yuan for life

Monthly salary: 6,000 yuan, 72,000 yuan a year, 2.88 million yuan for life

Monthly salary: 7,000 yuan, 84,000 yuan a year, 3.36 million yuan for life

Monthly salary: 8,000 yuan, 96,000 yuan a year, 3.84 million yuan for life

Monthly salary: 9,000 yuan, 108,000 yuan a year, 4.32 million yuan for life

Monthly salary: 10,000 yuan, 120,000 yuan a year, 4.8 million yuan for life

Monthly salary: 20,000 yuan, 240,000 yuan a year, 9.6 million yuan for life

Monthly salary: 30,000 yuan, 360,000 yuan a year, 14.4 million yuan for life

Monthly salary: 40,000 yuan, 480,000 yuan a year, 19.2 million yuan for life

Monthly salary: 50,000 yuan, 600,000 yuan a year, 24 million yuan for life

You will understand why so many people like to do contracts in the cryptocurrency circle, because they all have a heart to get rich quickly. In this impatient society, most people are unwilling to "get rich slowly" and would rather gamble with high leverage.

There are also some people who operate with large positions and small leverage. This type of people has a more stable income. Although the income will not be as high as that of gamblers, 7-8 out of every 10 orders will be profitable.

I guess everyone doesn't want to be a gambler, but if you don't have the skills, then you must learn first

1. Liquidation in the cryptocurrency contract market is common

In the last month, we have witnessed a liquidation of up to $20 billion in the cryptocurrency contract market. This data makes us ponder: Is the cryptocurrency market really short of funds?

In the cryptocurrency world, it is not difficult to find that funds are never a problem. What is truly scarce is the upward force that can gather all forces. This force is what every market participant desires and is the key to driving the market forward.

So why did a margin call of such magnitude occur? Was it just a small amount of capital trying to make a fortune with a small investment? This is not the case.

Whether it is small capital or large capital, the pursuit of getting rich overnight is a common goal. When we see those liquidation figures, we should not simply attribute it to the impulse of small capital.

Suppose that if 1 million retail investors all enter the contract market, then the 20 billion liquidation funds will average out to 20,000 per person. But this is just an extreme assumption, which is based on the assumption that all retail investors participate in the contract and all contracts are liquidated. But the reality is not the case. Recently, the proportion of liquidation of long positions has reached more than 90%, which has caused us to think about the real situation of the market.

From this perspective, it is not just retail investors who are liquidated. The liquidation of tens of billions of dollars is more like a warning: whether using 5x, 20x or 100x leverage, there are huge risks. This risk can come at any time regardless of the size of the funds.

2. Establish a robust contract practice system to cope with market fluctuations

Why are so many people still hesitant and hesitant to buy recently? After in-depth analysis, I found that different friends have their own unique insights, but more voices reveal the following mentality:

They have "run out of ammunition" and lack of funds makes it impossible for them to re-enter the market.

The second is the concern that "the decline will never end", and the fear that the market will continue to fall after buying.

The third is the mentality of "fear of gain and loss", which is to be afraid of losses but also to pursue victory, thus falling into a vicious circle of chasing ups and downs.

The fourth is to "wait and see" and miss the opportunity in hesitation.

The fifth is "lack of courage and determination", feeling fear of the unknown in the market and being unable to act decisively.

These mentalities are common in the cryptocurrency world. They are like an invisible barrier that fills the entire market with panic. After an in-depth analysis, I found that the first four reasons mostly stem from the cognitive level of contract investment. Only when you have a deep understanding and sufficient knowledge of the market can you overcome these obstacles and have enough courage and courage to deal with market fluctuations. The second is the lack of knowledge of contract speculation. In addition to the two main reasons for the market downturn after the cryptocurrency market crash: one is the natural fear instinct of human beings, and these psychological factors, I think the more critical thing is to establish a set of your own contract practice system.

3. From self-awareness to strategy improvement, achieving long-term stability

The famous investment philosopher Van Tharp once said: "You are not trading the market, but your understanding and belief in the market." What this means is your investment operating system - you have a unique set of market interpretation and action guidelines, but building such a system is not easy.

How easy is it to build a practical system?

Before building the latest strategy system, you need to clarify your investment philosophy and have a deep understanding of yourself. This includes your interests, goals, knowledge accumulation, skills mastery, and the boundaries of your abilities. Only by truly understanding yourself can you find a path that suits you. In addition, you need to be clear about when to enter the market, when to leave the market, which targets to choose, and how to configure positions. Not only that, you also need to be prepared to deal with mistakes. When the market trend does not meet your expectations, how should you deal with it? This is not to let you choose extreme methods, but to let you learn lessons from failure and constantly improve your system.

You may find this road difficult. But playing with coins is not an easy task that can be accomplished overnight. It requires you to constantly learn, practice, reflect and adjust. To establish and verify a perfect investment operating system, you often need to go through two bull energy cycles. In the stock market, this may take 6 to 10 years: in the cryptocurrency circle, although the generally recognized bull energy cycle is shorter, about 4 years, it also means that you need at least 8 years to continuously improve and verify your system.

This may sound daunting, but you have to know that this is a marathon, not a sprint. However, I must admit that not everyone realizes the importance of establishing an investment operating system. Some retail investors may blindly follow the trend and chase the rise and fall throughout their lives, and never really establish their own strategy system.

4. How to avoid liquidation in contract operation?

In fact, I have tried to build multiple operating systems. I have carefully designed the valuation model of currencies, the criteria for buying and selling, the strategy for selecting currencies, and the planning of holding time. Whether it is the stock market or the foreign exchange market, I have put my heart and soul into it. Now I bring these experiences to Erquan, hoping to find my own path to success here.

In the past few years, I have encountered five liquidations in contract operations. This is undoubtedly a heavy blow to me, and it is also a miraculous experience in my career in the investment circle. After each liquidation, I tried to find various reasons and causes to explain it, and even complained about the volatility of the market like many leeks. But one day, it suddenly dawned on me, as if I had an epiphany. I began to realize that an overly complex operating system might not be what I really need. I began to think about whether there is a trick that can get rid of the trouble of liquidation from now on, so that I can be more calm on the road of the investment circle. So, I found my answer-rigorous position management. Although this trick is simple, it contains profound investment wisdom.

It allows me to stay calm in the face of market fluctuations and avoid getting into trouble due to excessive leverage or heavy positions. I believe that as long as I can strictly implement this strategy, I will be able to go further and more steadily on the road of investment.

5. Extreme position management: the ultimate line of defense against the liquidation of the international contract!

The root cause of contract liquidation is often due to two factors: excessive leverage and full position operation. These two are like a double-edged sword of position management, and we need to carefully weigh them. Leverage and position complement each other. When you choose high leverage, you must adjust your position to a very low level accordingly, and vice versa.

We don't need to comment on the extreme volatility of the market, nor do we need to be overly emotional about the ups and downs of the market. How the outside world changes has nothing to do with our inner decisions. All we have to do is to protect the safety of our positions. The market will always stir up waves at some point, but the safest strategy is to put yourself in a solid fortress. You can occasionally stick your head out and feel the pulse of the market, but you must never expose yourself to the forefront of risks.

Therefore, extremely demanding position management has become the core of contract trading. It is not only a strategy, but also an attitude, a reverence and respect for investment. For example, the current price of EOS is 3U. If we can control our contract liquidation price at 1.5U, then no matter how the market fluctuates, we will be safe. This is the charm of position management, which makes us more calm and at ease in investment.

There is an old saying: "If you keep the green mountains, you will never run out of firewood." This is the essence of position management. Only by ensuring the safety of your own funds can you be invincible in the future market. In the currency circle, I always adhere to half-positionism, or even dynamic half-positionism +. Whether it is spot trading or contract trading, I can handle it with ease. After experiencing the baptism of the contract market many times, I deeply realized that the only secret to playing contracts is position management.

Even Warren Buffett maintains a large amount of cash reserves. Why can't we learn strict position management from them?

I am A God, I have rich market experience in many financial fields. Follow me here, penetrate the fog of information, and discover the real market. Grasp more opportunities of wealth codes, discover truly valuable opportunities, don't miss them and regret it!

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