A very cruel reality is: many people are still in the stage of how to play contract leverage trading, how to play contract trading for beginners, contract trading skills, and they want to use contract leverage operations to quickly add a ten thousand after 1,000 and rush to get started. Do you think it would be strange if their positions were blown up?
Players say that there is only one outcome to playing contracts, and the final outcome is liquidation, with all the account assets lost. I have a different opinion on this.
In practice, this statement seems to be correct. Many people have been liquidated while playing contracts, but how many people have studied in depth what exactly happened when playing contracts? How did they play? With what attitude? How did they operate? The thoughts before and after the orders were liquidated, etc., have been ignored by many people.
Playing contracts can indeed bring higher returns in a short period of time, but it also comes with certain risks. To successfully conduct contract transactions and double your assets while avoiding liquidation, you need to master certain investment skills and internal strength.
Keep strengthening your inner strength, don't just rush into a contract with a blank sheet of paper and take a heavy position. Isn't it expected that your position will be liquidated? What's so strange about liquidation?
Here are 5 ways to improve your inner strength:
1. Carefully study and understand the relevant knowledge of contract trading: understand the basic principles of contract trading, trading mechanisms, risk management strategies, etc.
2. Make a clear trading plan: Before trading contracts, make a detailed trading plan, including investment goals, risk tolerance, fund management strategies, etc., stick to your plan, and don’t be greedy and blindly pursue high returns.
3. Risk control and fund management: allocate funds reasonably, do not invest all funds in one contract transaction, set stop-profit and stop-loss points, stop losses in time to control risks, abide by risk management rules, and do not take excessive risks.
4. Track market dynamics and information: Keep track of market changes and related news in a timely manner, understand market trends and market conditions, and make appropriate investment decisions by making rational use of tools such as technical analysis and fundamental analysis.
5. Control your emotions and mentality: In high-risk contract transactions, it is very important to control your emotions and mentality, not be greedy or fearful, and maintain a calm and rational attitude in transactions.
Some practical tips for avoiding contract margin calls; there are no unchanging rules or techniques, the market is ever-changing, and you must remain constant in the face of change.
The risk of contracts is inherently higher than that of spot;
Overcome human weaknesses and don’t be greedy;
The contract operation of altcoins cannot be done at will, and shorting altcoins requires prerequisites;
The choice of contract multiples is very particular and should be made according to different situations;
It should shake the earth and mountains, but it doesn't move at all. Take care of your right hand, it may also be your left hand;
For players with small capital, choosing contract operation is a good choice, which can indeed double the assets in a short period of time; avoiding liquidation is the first priority for contract players, and liquidation is the end of contract players.
The operation of contracts requires an all-round player and a strong knowledge base as a driving force. It is not as simple as some people think, that is, if it is bullish, go long and if it is bearish, go short...
Every time you open a contract, you must think about the possibility of a margin call and make corresponding preparations to prevent it. It is impossible to guarantee a profit on every contract, but there are ways to prevent a contract from being liquidated.
There are risks in contract trading, which are well known to all players. However, there are some people who have never seen any return on their investment after playing with contracts, and they call themselves angel investors. Investors must have a certain level of knowledge and experience.
