In fact, contracts are not for ordinary players.
1. Fund management must be good. With a leverage of 0-100x, short-term losses are inevitable. The single risk should generally not exceed 2%-3%, and aggressive players should not exceed 5%-8%. If the risk exceeds 8%-10%, the drawdown in the unfavorable period will reach 70%, and the average person's mental breakdown point is around 50%. Fund management must be strictly enforced.
Many people like to trade 5x or 10x, and their trading level is above 4h. The stop loss of the trading level above 4h is generally 5%-15%, and the risk of a single transaction has reached 25%. Doing so is like seeking death. In order to ensure the risk level and high leverage at the same time, the level must be lowered to 1 hour, 15 minutes, or 5 minutes.
The smaller the level, the fewer players can handle it. Generally, 1h-4h is the limit for ordinary players, 5-15 minutes is what professional players can handle, and 1 minute is beyond the control of ordinary professional players.
2. The trading system must pass the test. To hone the trading system, long-term trading experience must be accumulated. The sign of successful running-in is that it does not go beyond the model and the conditions are clearly defined. In this process, continuous iteration is required, and the baptism of the mainstream of the bull-bear shock market is required. Because it is leveraged trading, t+0, and frequent trading, you need to prepare 90%✖️9 tuition fees. Many people come up and play with tens of w. You have to figure out one thing. No matter how much starting capital is, it is only enough to pay tuition once, and there are 8 more times later. Therefore, you must do it with small funds, hundreds or thousands of dollars, and don’t add funds when you make a profit, and withdraw money when you make a profit. Continue to use small funds. At the beginning, the system and operation will not be particularly proficient, and many errors and unnecessary actions cannot be avoided. Many posts say how much they lost. In my opinion, such losses are meaningless. They just paid tuition once, and the door has not been touched. The learning curve has not been raised, which is no different from gambling.
3. Execution must be good. Similar to last year's 519, if you bet on the wrong direction once, you will be doomed. No matter how much money you made before, it will be equal to 0 as long as you don't get through such a black swan. Not to mention strict stop loss, more liquidations are caused by bottom fishing against the trend, similar to the recent Luna, which was also liquidated by bottom fishing against the trend. Don't bet on low-probability events, and don't expect to achieve success in one battle.
4. Time and experience accumulation. In a bull-bear market, you need to be familiar with the market characteristics of different varieties at different stages and adjust your strategy according to market conditions.
For small investors, the time they spend in this market is very limited, so it is certainly difficult to get involved in such a professional market. I have a few suggestions.
1. Trial and error with a small amount of capital. 2. Leverage should be set below 2/3 times, and capital planning should be done well under the premise of large cycles. Rolling operations can be considered. 3. Do large cycles at the 1h, 4h or daily level. 4. If the conditions are insufficient, do not do short-term contracts unless you are a professional, and do not do it unless you are desperate. 5. If you have not completed the previous 4 items, do not invest more than 20,000 yuan, and only use pocket money that you will not feel bad about losing if you lose everything.
In fact, in terms of difficulty, contracts are much more cruel than arbitrage and spot trading in terms of results. Don't look at the few people at the top of the pyramid. They are all trying to trick retail investors into entering the market. Everyone knows that the success of a general is the result of the sacrifice of thousands of soldiers.
I hope there will be less tragedy and more rationality. Keep a light position, follow the trend, and stop loss. The above suggestions hope to save your wallet and prevent you from falling into the quagmire of the casino and going down a road of no return. With 2,000 yuan in your pocket, why do you have to do contracts? You can only make 20,000 yuan if you make ten times a year. Setting up a stall for a month is not better than this. Many people end up getting stuck in a dead end and have to do it. The opportunity cost is much higher than other ways. Do it according to your ability.
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