For example, the price of a certain cryptocurrency was still over 20,000 last night, but it rose to 24,000 today. This means that investors who used 10x leverage to trade short positions were basically liquidated. At the same time, investors who used 10x leverage to trade long positions last night made money, and the wealth of short traders was transferred to long traders. However, the profit of long traders is only temporary. The exchange made a profit by charging fees.
Those short traders may be raising funds and preparing to re-enter the market. Some may still be holding on stubbornly, while investors using 3x and 5x leverage may be suffering from market fluctuations. If the market rises another 10% tomorrow, those who use 5x leverage will all be liquidated. The next day, if the market rises another 20%, those who use 2x leverage will also be liquidated. They are likely to cover their positions, but after the short positions are liquidated, many shorts will start to turn long after a while, and the market will suddenly fall by 20%. Long traders using 10x leverage will be liquidated again, and shorts will start to make profits. In this repeated fluctuation process, the exchange acts as an intermediary again and again, and the handling fee is charged every time funds flow.
However, there are also some people who are lucky and can make the right decisions every time. They can accurately predict the market trend 10, 20, or even 50 times in a row, and their wealth has grown from 1000U to 100 millionU. Therefore, all those who want to participate in contract trading began to look up to him, and female fans worshiped him. He began to show all kinds of luxurious life in the media, with private jets, yachts, diving in the Maldives, golf, red wine clubs, etc., and his life was very exciting. As long as he made a speech, countless fans rushed to follow suit.
He also authored the book "Contract Trading Tactics", priced at 37 yuan, which attracted enthusiastic purchase by fans from all walks of life. He also launched an offline course called "Contract Tactics" for a fee of NT$59,000. Countless fans flocked to sign up, and his assets eventually reached about 200 million U. So, he saw the masters on the rankings and decided to become famous in one battle and challenge those big guys with assets of 1 billion. He was unwilling to be pushed down the list by a veteran with a net worth of 1 billion at a young age.
However, one afternoon, he lost 100 million of his 200 million funds. He was unwilling to give up and recharged part of his funds, but his position was liquidated again. Suddenly, all his skills seemed to fail. He had not left home for 7 consecutive days and only slept two hours a day. In the end, his position was liquidated again. At the moment of his liquidation, he received a text message reminding him that the market was volatile and he had to cover his position as soon as possible, otherwise his position would be closed. He wanted to borrow some funds to recharge, but it was too late and his position had been liquidated.
He received an email from the billionaire boss in his mailbox: "Boy, go back and practice for a few more years. You are not from our dimension, so don't challenge us. We worked hard for 10 years in the physical world, and then worked in the spot market for another 10 years. Just because you made 200 million in half a year, you want to challenge our 1 billion. We dare not challenge the 10 billion above. We can only do the spot market honestly. It's not that he doesn't know how to contract, but he realized that the billionaire boss could destroy him with just one finger, and he couldn't resist at all. So he could only quit the game, cancel his account, and start leveling up again. At that moment, he finally understood that making money through royalties and courses is the right way. After making money, just do spot trading honestly. I hope this story can bring some inspiration to friends who are engaged in contract trading, and it can also be used as a story to relax your mood. After all, what happens to others is a story, and what happens to yourself is the real thing.
In the spot market, there is only one in a hundred; in the contract market, there is only one in ten thousand. If you don’t have the skills to be one in a million, don’t act rashly and get involved in contract trading.
