Contract lessons worth millions, true knowledge comes from practice!
The certainty of the contract takes precedence over the price. You cannot go short when it is high and go long when it is low. If the trend does not reverse, it will be higher or lower than the price. Only when the trend is confirmed can leverage be added. A contract can be opened only when a major reversal signal appears on the fundamentals and a more ideal opening position appears on the price. Bottom buying on the left side is only applicable to spot prices, because spot orders can hold orders, but it is difficult to hold orders with combined orders. The bull market is dominated by long positions. There is room for the long position to double several times or dozens of times, but there is never room for the short position to more than double.
Buying the bottom and guessing the top of a contract often results in losses. You must go with the trend and not buck the trend. Be careful not to be impatient. Both long and short markets need to wait for the trend to decline before taking advantage of it to suppress it. A big wave of market often has a certain degree of inertia, and a braking signal appears. Sometimes it will slide forward for a certain distance before it can stop. Especially when retail investors participate in groups, the market often goes up irrationally and reaches an extreme point. Find the direction based on the fundamental signals, find the turning point on the graphics and emotions, it is more reliable to intervene in the late period, and let your predictions be verified on the graphics before adding a position. The mid- to long-term trend direction is determined by fundamentals, and short-term fluctuations are determined by market sentiment. A combination of rationality and irrationality is required to make a good contract. Contracts require higher accuracy than spot prices. The higher the leverage, the higher the accuracy requirements and the more difficult it is to control. You need to follow Act according to your own circumstances, leave room for leeway, and do not take risks that exceed your risk tolerance and driving skills. Investment is a rational risk-reward calculation. Positions are directly proportional to risk-return rates. It is not about gambling on luck. The so-called good luck means going with the trend, bad luck or going against the trend. Only by following the trend can good luck follow.