In the long time of being in the cryptocurrency circle, you will see many friends’ positions being liquidated. That’s because you didn’t do the following:
1. Unable to determine the direction of the market, always struggling whether to enter the market to go long or short, is it an explosion or doomsday? It is easy to be driven by the square thinking, easy to sell at a loss. What I want to say here is that when Xiaobai is not sure about the direction, he should control his hands and try not to operate. If you are playing short-term, you must set a stop loss!
2. Improper position management. When entering the market, you have a heavy position and open more than 3 contracts at the same time. If the heavy position faces a sharp drop, the liquidation price will become higher and higher when several contracts fall at the same time. You don’t know which contract should be liquidated at which price. Generally, you mainly play 1-2 contracts, with a margin ratio of less than 3%. You enter the first position with a share of 1%. If it is lower, you will absorb it. It is strictly forbidden to increase the position with floating profit! !