Many people brag about using 5x or 10x leverage, but they really don't understand leverage!
Leverage doesn't work that way! The leverage ratios set by the platform have nothing to do with our risk control as players. Real leverage depends on your own principal and stop-loss point.
Crypto volatility is terrifying; you need to be cautious. Only use 10% to 20% of your principal to open positions each time, and the total position should not exceed 2 to 4 times your principal.
Moreover, you need to set a stop-loss point, losing no more than 20% of your principal. If you can't handle it psychologically, lower it even further.
Some people ask what the point of trading contracts is. I tell you, if you want to make money trading contracts, you must first survive!
Trading contracts is a different matter from investing in coins. Contracts deal with risk, and you earn money through risk management, which means the money comes from others blowing up their accounts. But remember, if you want to make this money, you must not blow up your own account first.
Looking at the market from a risk perspective is completely different from how ordinary people do it. Ordinary people buy coins and just hold on when they lose, waiting for a rebound.
But if you trade contracts like that, you would have been dead a long time ago. Trading contracts requires strategy, risk management, and patience. You have to wait for opportunities, test, retreat, try again, and wait again. Successful speculators spend most of their time waiting.
To be honest, making money from contracts isn't hard because there are always people blowing up their accounts and giving away money, but what's difficult is that you have to go against your instincts and say goodbye to the idea of 'getting rich overnight.'
Whenever you want to increase your position or open a new one, remind yourself to stay calm and go against your instincts.
Trading contracts is like stepping into a boxing ring. You need to have your own set of strategies and theories. For instance, many people are currently shorting most coins while timing their longs on BTC for hedging.
This strategy looks simple, but there are many details. You need to learn stop-loss theory and have your own operating principles. All of this requires learning and training; it's not something a novice can just pick up.
I use flying a plane as a metaphor; flying a plane and doing this are actually quite similar. If you can't fly a plane and force yourself to do it, you're just looking for death.
Forcing yourself to trade when you don't know how is just asking for liquidation. Risk management and stop-loss management are like the basic skills of flying a plane. Once you've learned these, you can ensure that you won't die in a particularly ugly way.
So if you want to make money trading contracts, learn risk management first, then talk about making money. Don't always think about getting rich overnight, as that will only lead to your downfall faster!
Opportunities are coming soon. In the upcoming layout direction, I will guide everyone to aim for the profits in altcoins. Expecting a space of over 10 times is not a problem. Like and comment to join me in laying out the whole bull market!
$SUI $USUAL $DOGE
