Many people don't understand why contracts are frequently liquidated, but there are still so many people playing. I saw some people say that 5x or 10x leverage is already very small, which is really speechless. Everyone is wrong, leverage is not calculated in this way. The leverage rate given by the platform is used to protect itself, not what you should pay attention to. You have to calculate the risk based on the stop loss and principal that you can bear. Only when you really understand this can you be considered to have entered the market.
The volatility of the cryptocurrency market is ridiculously large. When opening a position, it is enough to invest 10%-20% of the principal each time, and the total position should not exceed 2 to 4 times the principal. At the same time, the total stop loss risk should be controlled within 20%, and it is best to keep it around 10%, which means you need to leave some funds empty and don't bet all at once. Some people may ask, is there any point in playing contracts like this? Haha, I can only say, do you want to make money or risk your life? You should know whether the contract is the most flexible tool. Is the U standard really useless? Think about it, in a bear market, which asset is the safest? When spending money, do you use coins or U?
Many people confuse contracts with investments, but they are actually two different things. The core of contracts is trading risk, not the dream of getting rich. You may not believe in technology, dealers, or K-lines, but there is one thing you must understand, and that is [risk]. Knowing how to control, calculate, operate, and withdraw risks is the key to whether you can survive in this market.
When you do contracts, you earn money from risk management. You think you have earned a profit of three times leverage, but in fact, the extra money comes from other people's losses. And if you want to get this money, the premise is that you can't get liquidated. Looking at the market from a risk perspective is completely different from the perspective of ordinary people. People who buy coins can hold on to orders and wait for the price to rise, but if you hold on to orders when doing contracts, you won't survive for more than a few days.
To put it bluntly, contracts are anti-human operations. Whenever you are eager to add positions or go all in, remind yourself: contracts are anti-human, and the more anxious you are, the easier it is to lose. Therefore, the normal state of contract operations is to wait, test, retreat, and test again until the opportunity appears.
Some people say that contract trading is like boxing. You must be fully prepared before entering the ring, otherwise you will be knocked down by the market. Most of the time is spent waiting, and there is little time to seize opportunities. But because of this, you have the opportunity to make money if you survive. Moreover, when opportunities come, you must have enough capital to pick them up.
Many people think that it is not difficult to trade contracts. It seems to be a simple buying and selling, but the real masters have done a lot of work behind the scenes. Risk management, stop loss management, and position control are all professional fields. You can't make money by just operating casually. In the final analysis, this is a skill that requires long-term training and accumulation, and it cannot be mastered by impulse.
Don't think about getting rich overnight. The real masters have survived in the market with time and patience. If you are willing to spend time learning and solidify your basic skills, there will always be a chance to pick up the "money" that belongs to you. But remember, don't get carried away, the contract market is merciless.
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