Why are there still so many people playing cryptocurrency contracts even after they have been liquidated?
I see many people saying that they opened a 5x or 10x leverage, which is already a very small leverage. I am really speechless. In fact, I want to tell you that you are all wrong. Leverage is not calculated like this at all. The leverage ratio of 9 calculated by the platform has nothing to do with you. It is almost the share ratio that affects the safety of the platform. You should calculate the risk based on stop loss or full principal. Crypto has such a large volatility. It is better to open positions evenly in batches, and each time it is about 10~20% of the principal. The total upper limit of all positions is about 2 (short) to 4 (long) times the principal. At the same time, the overall stop loss risk high value should be within 20% of the principal (or the actual psychological tolerance range must be less than 20%). The recommended time average risk is 10%, which means that there is a part of the time when the position is short. . . . Some people may ask, why do we still do contracts... . . . . . . . Haha... I may offend the entire cryptocurrency community by saying this. Do you really want to earn coins or money? Are there any more flexible speculative tools than contracts? Is the u-standard really useless? In the face of a big bear market, which is safer, coins or u? When you spend money, do you spend coins or u?
Dear friends in the cryptocurrency circle, doing contracts (pure speculation) and investing in cryptocurrencies (similar to venture capital) are two completely different professions. The essence of a contract is trading risk. In other words, using risk management and expectations to make money. When doing contracts, you must make this sentence clear. You can not believe in technology, the dealer, the K-line moving average, BTC, and think that they are all scammers. You can also believe in these things on the contrary. These conceptual issues will not hinder you from making money. But there is only one thing you must understand, that is [risk], what is risk, how to control risk, how to calculate risk, how to operate risk, how to withdraw risk... How to survive... -------You cannot make money beyond your cognitive scope... Originally, you invested in a coin, and the coin value doubled by 8, and you earned 100%; then you tripled the contract and earned 300%. Do you know who earned the extra money and where it came from? 1. For contract trading, what you earn is actually risk management money, which is the money given to you by others' losses and liquidation. To get this money, first of all, you cannot liquidate. . . . In fact, looking at the market from the [risk] end is completely different from looking at the market from an ordinary person. It's like looking at a mountain from the bottom of the mountain and looking at it from the top of the mountain. It's completely different. To give an example, people who buy coins can hold their positions and wait for the price to rise, and resist losses. It's about patience. . . But if you hold your positions and wait for losses in contracts, you will probably not survive the first three episodes. Therefore, the operation based on [risk] management is completely different from the operation based on [dreams]. In the trading market, dreaming requires money, and people who manage [risks] strive to get this money. So, whether you want to be a [dreamer] or a [risk controller], it depends on you. However, [dreamers] should not play with contracts, because contracts will shatter the beautiful dreams that you have made for years in a few days, and it is too fast to wake up.
Anyone who has made a lot of money will have a feeling in the process of making money: "That period of time was almost picking up money", almost, but - when your opportunity comes, that is to say: when it is your turn to pick up money, you have to be alive and have the capital to pick up money. Yes, it is not difficult to make money from contracts. . . . . After all, there are so many people who blow up their positions and give away money. They are racing on the cliff, and you just need to wait at the bottom of the cliff and pick up some parts to eat. The difficulty is that it must be anti-human. Basically, you have to think against the ordinary people's ideas such as "getting rich overnight". Whenever you are eager to increase your position or open a position, you have to think about what it means to [go against human nature]. ...…. If buying coins is fishing, then doing contracts is going to the boxing ring.... So I said that there is a lot of time for empty positions, which is normal. Wait, test, retreat, try again, and wait again... This is the norm for successful speculators.
In fact, the strategies for a period of time are almost all simple and clear, and it can be said that everyone knows it. For example, now on February 14, 2022, the operating strategy of many teams is: short most currencies, and choose to go long on BTC for hedging. I won’t talk much about the reasons. Think of yourself as a big boss in the currency circle, and then deduce it. With such an absolutely profitable strategy, 80% of people can’t make money if they are asked to operate the contract. And such a simple strategy actually contains countless details. For example, the simplest operating principle, why not directly short based on BTC, why shorting is much more conservative than going long, and the holding time is much shorter, how to deal with stop loss when shorting, how to short various technical currencies... Regarding the stop loss plan of the contract, there needs to be a theory, which is worth learning. The value of the stop loss theory is at least half of what you put into the contract. If you can’t find it, you have to deduce one yourself (this is what I did. I found someone, but he refused to teach me, so I deduced a set myself). A complete set of theories means a complete set of operations. If you strictly implement them, there will always be opportunities. Trading is like this. On the surface, it is extremely simple to buy and sell (one minute on stage), but countless people have put in enough effort behind the scenes (ten years of hard work off stage). . . . . . . . In general, this is a profession. It does not mean that novices cannot do it, but you must study and train seriously before you can really play.
I often compare flying a plane with speculating. The reason is that the two are similar. If you force yourself to fly a plane without knowing how to fly, the plane will be destroyed and you will die. If you force yourself to speculate without knowing how to speculate, your position will inevitably go bankrupt. Risk management and stop loss management are the most basic skills of flying a plane. With these, you can at least avoid death.
(Search for the same name on the original website)
