Why is contract trading not suitable for most people?
Take the personal experience of a netizen as an example. His deeds deeply reveal the high risk of contract trading.
This friend is a smart and exploratory person. After learning about my gains in the cryptocurrency circle, he was quickly attracted by the potential of this emerging market.
However, he rushed into the world of contract trading without knowing much about the cryptocurrency circle.
At first, his investment seemed to be quite smooth. In just two weeks, his assets doubled successfully through contract trading. The excitement brought by this quick profit made him more addicted to contract trading and even began to use higher leverage.
In just one and a half months, his assets doubled by 7 times. Such gains made him full of confidence and even began to question my sound investment strategy.
However, the good times did not last long. As he further increased leverage and got involved in riskier junk coins, his investment began to have problems.
In the eighth month, his profits were 40% back. Although he had begun to realize the risks at this time, his previous success made it difficult for him to give up his dependence on contract trading.
Finally, in a high-risk investment, his assets were reduced to zero within a day. This painful lesson made him deeply aware of the high risk of contract trading. Although he later tried to start over, the previous losses were irreversible.
Contract trading is not suitable for most people.
First, contract trading requires extremely high risk tolerance and investment experience. For novices, blindly following the trend or overconfidence can lead to serious losses.
Second, contract trading has a very high leverage effect, which means that even small market fluctuations can lead to huge losses.
Finally, the complexity and uncertainty of the contract market make it extremely difficult to predict market trends.
For most people, a sound investment strategy is the key to long-term profit. Through strategies such as diversified investment, regular fixed investment, and long-term holding, we can reduce risks and enjoy the benefits of long-term market growth. And those who try to make quick profits through contract trading often pay a heavy price in the end.
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