Contract trading is a trading method that many cryptocurrency traders cannot avoid, but the risks of contracts are difficult to control. Gradually, the operating standards begin to change and gradually lead to the risk of liquidation.
In any case, you should only build a light position when you start, so that when the market trend develops as you expected, you will be able to at least double your position.
If you don't plan in advance to increase your investment after the position is proven to be correct when you open a position, at best you are just playing a game with a 50-50 chance of winning or losing.
When I was teaching my friend, I asked him a few questions: First, when you first opened a position, did you open the position you planned? Second, did you have a plan for how to increase your chips before you started? If your answer to any of these two questions is no, then you must go back and re-examine your trading procedures.
Profit = profit points × position at the time of profit. In order to ensure that you can make money in the long run, each order must have a higher profit-loss ratio. Another parameter is to know how to increase the position when making a profit. The position of the profitable order is heavier, and the position of the loss order is lighter.
Because no one can predict the market, and no one can foresee which order is correct and which is wrong, so the market needs to move for a while to verify, so it is necessary to enter a light position first and then increase the position.
