Contracts are not untouchable, but you need to think clearly.
ETH dropped from 4100 to 3300, that's almost an 80% drop, right?
Is that a significant drop?
But it rose from 2500, so if it drops back to 2500, is that too much?.... On the other hand, it dropped from 4100, so if it rises back to 4000, is that strange?
When going long at this position, you should think, what if it drops to 2500?
Likewise,
When going short at this position, you should think, what if it rises to 4000?
I often see liquidation posts in the plaza, many of them get liquidated with price movements of less than 5%, and some even just 2% or 1%. I often feel... you deserve to get liquidated..... I used to be like that, after suffering losses, I realized I must admit that I don't have that ability or vision.
Unless your vision is extremely accurate, every time you open a position, it's probably like flipping a coin, with a 1/2 chance of winning and a 1/2 chance of losing.
How much can you win? How much can you lose?
Have you thought it through??
In fact, the more people are unclear, the better, why??
If someone says contracts are a zero-sum game, either they don't understand contracts or they don't understand zero-sum.
Please remember, contracts are a negative-sum game; theoretically, all investors' gains and losses combined will be negative.
So if I want to make money in the contract market, the more people open positions without understanding, the theoretically smaller my risk will be, and the more people lose money, the greater my chances of making money.
You can see from my old posts, I am now part of the robot tribe.
The more people chase rising and falling prices, the better it is for the robot tribe.
The more people use robots, the worse it is for the robot tribe.
So I no longer publish posts to promote robot trading.
Today, I wrote this because I was bored after eating.