What is the way to invest in futures (contracts)? What is the fundamental way to make money?
Today, let's talk about futures (contracts), which is to make a small bet for a big gain. What are futures (contracts)? In a nutshell: chasing ups and downs!
⬆️ Chasing ups and downs is a very anti-human thing. From a psychological point of view, people want to quickly pocket money when they make a profit, but they are very resistant when they lose money, which often leads to great tragedies. When you make a little profit, you want to run away to stop profit, but when you lose money, you can resist the order very well. The more you resist, the more you get excited. When you get excited, you will take out a loan or keep charging margin until the position is blown up. The true meaning of futures (contracts) 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 (contracts) 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 the bottom at 4,000, but those who rolled from 12,000 to the last 40,000, especially the last few days, which was the most profitable. Small money players need to be more greedy when they are greedy, and you can make a fortune by rolling to the end.
⬆️Because you have leverage, you can't be a friend of time, you are an 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 use 5% to make the money that others can only make when Bitcoin rises 100%.
⬆️This is a bit general, but what I want to express is: if you lose your friend time, you have to use leverage to defeat others and continue to increase your position with floating profits. Spot is different. You can only buy the bottom when the price drops below its value. The more it drops, the more you buy the bottom.
⬆️In fact, both are gambling, but the gambling methods are different. Spot is to exchange time for space, while futures (contracts) are the opposite, exchanging space for time. It doesn't matter whether you can see the long-term accurately or not, because leverage does not allow you to see so far. You can only take one step at a time and follow the continuation of the trend in the short and medium term.
⬆️The people who make the most money in the futures (contract) market are not those who can see clearly, but those who dare to gamble. What's the use of your accurate reading? 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 money.
⬆️For someone who wants to enter the futures (contract) market to complete the leap to the rich class, what is the most important thing, technical analysis? Fundamental analysis? Insider information of the banker? None of them, it's luck, because no one can beat the market, not even the "banker" in the mouth of the leeks, nor the "main force" in our understanding. In front of the sea of the market, whether it is the banker or the leeks, we are just a small boat in the stormy waves of the market, and all we can do is just go with the flow.
⬆️These views are aimed at the futures (contract) market. You can play spot trading without any leverage, because as long as you touch the leverage, there is a possibility of liquidation. Most people's big losses start from a small single resistance order. They cannot overcome human nature and stop loss, so they lose everything, because trading is too anti-human!
Finally, I wish you all can make money whether you trade spot or futures (contracts)!
If you want to know more about the relevant knowledge of the currency circle and first-hand cutting-edge information, click to follow me Zhuyefang Wumen Kanqunli to publish market analysis and recommend high-quality potential currencies every day.
