In the end, 99% of people who play contracts will lose money; but during the contract process, 100% of people will make money.

In the process of making money, every player will have the illusion that it is not difficult to make money, and that I am so powerful.

I wrote an article before, discussing whether or not to continue holding long BTC and ETH contracts, and many people participated in the discussion.

Suppose you have a floating loss of 2wu in real time; tomorrow the market will rise sharply, the BTC price is 28,000, ETH is 1950, and you have a floating profit of more than 2wu; today the market fluctuates again, and the profit and loss are also constantly changing.

If there is no end of the order, everything is just data, and the rise or fall is not the end.

Contract trading is all about expectations. The ups and downs depend on the market. Everyone’s judgment is limited, so the market will either go up or down, or go sideways.

If you open the right direction with high odds, you will be a winner in life; if you open the wrong direction, it will be a bottomless pit, and your position will be liquidated in a matter of minutes, or both long and short positions may be liquidated, resulting in wailing.

Continuously adding margin may result in continuous losses, and eventually you will not be able to bear it anymore. Not only will your funds be reduced to zero, but your mentality will also collapse.

There was a big guy who had a contract with a turnover of hundreds of millions, but in the end it was all gone. He now earnestly advises everyone not to play, because it will really bankrupt you and ruin you.

The process of playing is very exciting, and the profits and losses are magnified many times. Because investment trading secretes a large amount of dopamine, a factor of happiness, people are easily addicted to the happiness. Once you play, you will be addicted, and once you are addicted, you can't stop, so you get deeper and deeper.

Happiness Factor Dopamine Secretion Ranking

A friend of mine said that contracts are a fair way to do things, with a 50% chance of winning. Theoretically, this is true. For example, if you invest 1,000, open a short position or a long position, you always have a chance to win.

But human nature is to fear losses. Even if they go in the wrong direction, they will not admit their mistakes and will continue to add margin to hold on. They will continue to add margin until they run out of money and finally get bankrupt.

Human nature is also greedy. If you make money by opening in the right direction, you will not stop profit. If it goes up by 5 points, you will still wait for 10 points. While waiting, the market will fall sharply in the fluctuations, and the profit will turn into loss, and finally it will explode.

For example, as mentioned earlier, I opened long positions in BTC and ETH, but I did not take profit yesterday, and I suffered a floating loss today.

Some players joked that you make money in one circle and spend it in another, and it is difficult to take a penny home, which is also a reflection of the profit and loss of most people in the circle.

The 80/20 rule applies to any industry. Only a few people make money, while most people are just running behind.

A big guy said that when playing the web3 project, the account balance is only a limited-time withdrawal voucher and will be invalid after expiration.

For example, if you don’t cash out at the high point of Stepn running shoes, the profits will return to the market and return to zero; the value of running shoes worth hundreds of dollars will shrink by 90%. Every project has a life cycle, and when it comes to the next cycle, no one can stop the trend.

web3 game running shoes STEPN

If you don’t set profit or stop loss when playing a contract, no matter how much you earn, it will eventually be zero.

For example, Xiao Ming opened a short position when Ethereum was at 2200. At that time, the market was falling and most people were depressed, and even expected it to fall to 1800. However, the market did not follow the players' emotions. It rose all the way from 1800 to 1850 today, doubling in just over a month.

Opportunities arise when there are market fluctuations; ups and downs are opportunities for profit and sowing.

If someone can strictly follow the operating manual, perform each operation according to the checklist, stop at profit and loss without getting carried away, and overcome human weaknesses, there may be an opportunity, but 1% of people can't do it!

Many people have a high opinion of themselves and overestimate their self-discipline ability. They think they can do it, but once they get involved, they get deeply involved and end up with nothing.

The greater the profit, the greater the risk. The ultimate outcome of playing contracts is loss.

The above is just my personal opinion and summary. It does not constitute investment advice. Any investment behavior of the reader has nothing to do with the author.

I am the helmsman. I am learning about blockchain and paying attention to AI and web3.