There is value investing, but it is only applicable to spot trading. The basic logic is based on MMT (Modern Monetary Theory). Currency is bound to be over-issued, so just choose good assets and hold them. But you need to have enough capital and patience to build a position at an absolute low level and then hold it for a long time, just like buying Bitcoin for around $4,000 from March to December 2020, and Tesla for $60+ after adjustment, Apple for $50+, or Apple for $10 and Amazon for $100 that you bought many years ago.
But many people do not have the knowledge or patience to hold an asset for a long time, and often spend their time in the regret of missing out on the past. The most typical example is "I used to be able to buy Bitcoin for $3,000, but now it's only $10,000, so I'd better not buy it." Then, watching Bitcoin rise to more than $40,000, they are repeatedly upset. In fact, it is better to look to the future instead of dwelling on the past.
What we are talking about today is futures, which is a way to make a small investment for a big return. What are futures? In a nutshell: chasing the rise and selling the fall.
Chasing the rise and selling the fall is a very anti-human thing. From a psychological point of view, people want to cash in when they make a profit, but they are very resistant when they lose money, which often leads to great tragedies. When they make a little profit, they want to run and stop profit, but when they lose money, they can resist the order. The more they resist, the more they get excited. When they get excited, they will take out loans or keep charging margin until the position is liquidated. The true meaning of futures is not like this. It is to follow the trend. Since the trend is always, note that it is always, and it is not in the same direction as you, what you should do is to stop loss.
Futures do not care about the absolute opening price, but only care about whether the trend can continue. From the perspective of the total time, the trend actually only accounts for 5% of the trading time. For example, it took almost a year for Bitcoin to rise from 3,500 to 10,000, four months from 10,000 to 20,000, 17 days from 20,000 to 30,000, and 7 days from 30,000 to 40,000.
In fact, the people who made the most money from this wave of the main uptrend were not those who bought at the bottom of 4,000, but those who rolled over from 12,000 to the last 40,000, especially in the last few days. Small money players need to be more greedy when they are greedy, and you can make a fortune by rolling over to the end. Because you have leverage, you can't be a friend of time, you are the enemy of time. The higher it rises, the more you dare to chase it. When others are afraid of the rise, you have to increase your position. In this way, you may only need 5% to make the money that others can only make when Bitcoin rises 100%.
I said this in a rather general way, but what I want to express is: if you lose your friend time, you have to use leverage to beat others and keep adding positions with floating profits. Spot is different. You must buy at the bottom when the price drops below its value. The more it drops, the more you buy at the bottom. In fact, both are gambling, but the gambling methods are different. Spot is to exchange time for space, while futures are the opposite, to exchange space for time. It doesn't matter whether you are accurate in the long term, because leverage does not allow you to see so far. You can only take one step at a time and look for the continuation of the trend in the short and medium term.
The people who make the most money in the futures market are not those who can see clearly, but those who dare to gamble. What's the use of your accurate prediction? Do you dare to gamble heavily? Many people like to care about their good yields, but what's the use of that small position? If you can't make a lot of money, leverage and yield are not important. The total position is the basis for your making money.
Only courage and luck can make money. Low compound interest is a scam for most futures players. Because there are too many black swans in the futures market, even a low multiple may return to zero.
Therefore, the purpose of futures trading is to use small funds to gain big returns, which inevitably involves high risks. The leverage must not be low, and you must increase your position with floating profits, because you are trading space for time.
Make the most money in the shortest time. If you lose your head, you will die. But you can't be afraid or cowardly. You are betting that the trend will continue and that your life is strong enough. How can you make money if you are afraid of losing?
In this wave of real account, Li Xunhuan made more than 50 million from 200,000 in just two months by adding more positions with floating profits. Fei Ge said that he didn't know how to do technical analysis at all, he just relied on his feelings.
This is the essence of futures. You can't be afraid, if you are afraid, you will lose. Why are you afraid? Because your profit is not big enough, so you can't afford to lose. But when you make enough profit, you can withdraw the principal, and then you can gamble with confidence.
Yes, another reason for daring to gamble is to withdraw cash regularly after making a profit, and then continue to make profits.
Of course, this requires a certain amount of luck, courage, and patience.
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