Contract Trading Depth Guide: How to Avoid Losses and Achieve Stable Profits?
Based on my own trading experience, I've figured out several common trading methods:
The first method is to heavily invest in short-term trades, where you can see profits in just a few seconds. It feels great, and I can make some money each time, but it's all small amounts. However, if I make a wrong judgment and hold onto a losing position, all the previous gains can be lost, and even more. This approach doesn't go far.
The second method is to only buy at low prices. However, during a bull market, buying low doesn’t work because everything that should rise has already risen. You need to wait for a bear market, and only act when there are new lows. After buying, you need to be patient, and you can't have a heavy position. It's like running a small shop; there may not be much business usually, but once it opens, you can make a big profit. This method is stable and reliable.
The third method is to arbitrage during fluctuations, which can steadily earn some profits. But if you encounter a one-sided market or a volatile coin, it can easily lead to problems, and you might get stuck. It's best for those who don't have a deep understanding of trading to avoid this.
The fourth method is to short at the top, which can make money quickly; once you see a signal of a big top, you can earn money as soon as you open a position. But the problem is that big tops are rare. You have to keep an eye on the market, waiting and waiting; sometimes it can take three to five days to see one. Most people don’t have that patience; they see prices rising and get anxious, resulting in often losing more than they earn.
