The experience gained from paying 30,000 in tuition, let me summarize for myself.
1. When trading contracts, you must control your position size; the margin ratio should not exceed 20%.
2. You must, must set a stop-loss price; do not stubbornly hold on until you can no longer bear it. When you finally have to liquidate, it may already be too late. By that time, it might just be slightly better than a total loss. This point is even more important than the first.
3. Do not set your stop-loss price too close to the liquidation price. For example, if your liquidation price is 1 yuan, setting a stop-loss at 0.95 yuan is dangerous and can easily be triggered. Therefore, your stop-loss must be at least 10% higher than the liquidation price, or even more for safety. Of course, this is the extreme; generally, if the stop-loss is just 2-3% below the opening price, you should retreat immediately or change direction.
4. Do not stubbornly hold on; do not be reckless. If you think a coin has risen too high over the day or for several days, trying to short it early can be quite dangerous. You can set up a position, but do not be reckless; set a proper stop-loss and exit immediately if it doesn't work out.
5. Absolutely, absolutely do not get overconfident. Even if you are right about the direction, do not over-leverage. A small rebound can lead to liquidation!
Trading contracts is about making quick money. Since you've opened a contract, you're already on the fast track; don't try to accelerate further; haste makes waste.
Currently, I'm out of bullets, and I hope to gather more in the next couple of days, hoping I can follow these self-advice.
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