Contract trading usually involves leverage, which is the most attractive aspect. High returns can easily cause a loss of rationality. Therefore, when engaging in contract trading, you must adhere to safety and controllability as the minimum standard to play contracts long-term and seek survival and development within contract trading.
1. For some investors, the main need is to avoid the depreciation risk of falling coin prices, using a low margin to preserve value. You can open an order with moderate leverage when a downward trend forms, setting the stop-loss at the trend reversal point.
2. For speculative traders, stop-loss must be synchronized with the opening of the order, matching the use of leverage with the maximum tolerable loss for each order.
3. Regardless of hedging or speculation, open orders only at high risk-reward positions, reduce ineffective operations, and avoid high-frequency trading. Have clear goals and plan your trades.
The ultimate goal and main techniques to achieve in contract trading:
The only purpose of contract trading is to achieve significant wealth appreciation.
This is also the reason why most contract traders come to the crypto world, hoping to gain high returns from small investments. However, high returns are always accompanied by high risks. Therefore, the most important thing is to minimize risk as much as possible in investments, maintaining controllable and sustainable survival capacity.
Here are some tips for contract trading:
1. Be patient
You must have a plan for when to enter and exit the market. Customize your operating system and trading strategy; only enter the market when your trading conditions are triggered. Every contract trade must be well thought out, and you should not trade casually.
2. Learn to summarize
Every failure has its reasons. If the market price you predicted differs too much from the actual market price, you need to consider whether you are too unfamiliar with the market.
3. Reasonable position control
When placing an order, consider your position carefully. Enter a sufficient position at the most certain time to avoid raising costs by adding positions later.
4. Don't be stubborn
When making predictions based on your own expectations, if the market situation differs from your judgment, you must promptly adjust your thoughts. Don't stubbornly insist on your original idea; otherwise, if you have already incurred losses, being stubborn will only lead to greater losses.
