Hello everyone, my name is Mu Bai. Today I want to talk about whether contracts can make money? Everyone should know that contract trading is different from spot trading. Contract trading makes quick money, but quick money is hard to make. I will show you how to liquidate your position in minutes. After the position is liquidated, the money is gone, but after the spot market drops, you can still cover the position to reduce losses. No matter how the price drops, you still have the currency in hand, and there is still a day for a comeback. If you want to make worthless coins, you can ignore this sentence. Brother Bai has posted an article before about how to find valuable coins. I won’t go into more details here. If you don’t understand, just do it #BTC #ETH . Returning to the topic, can contracts make you rich? Hmm, how should I put it? Let’s first listen to a contract trading story from a fan friend!
To protect privacy, let’s call this fan friend Xiaobao. Xiaobao dropped out of school in his second year of high school. The reason for dropping out was not because he was not good at studying, but because his family had no money for his studies. Therefore, he has great expectations for every penny in his hand, hoping that every penny can make money.
After Xiaobao dropped out of school, he followed his uncle to the south to do decoration work. He climbed the stairs carrying large pieces of glass and knelt on the ground to lay the floor every day. In the dead of night, I will feel sad. Looking at the wounds on my palms, and then looking at the spaces posted by my classmates to talk, it is impossible to say that there is no resentment in my heart.
Every day when wages are paid, Xiaobao is happiest. When the uncle pays Xiaobao's salary, the aunt always smiles and says: "Xiaobao, your uncle loves you. Do you think anyone is still paying wages when he is learning skills from me?", Xiaobao Knowing the meaning behind this smile, he could only smile and work harder.
Half a year later, Xiaobao finally saved up to 10,000 yuan. Except for the fixed monthly food expenses, this is all the savings. The bank interest rate is low. Xiaobao did not consider the bank, so he deposited the money into Yu'e Bao. For 10,000 yuan, he can earn 6-7 cents a day, which is enough. A steamed bun cost. He feels that life is very good now. There are no desks, books, teachers and classmates, but he has the hope of life in his hands. He thought that as long as he worked hard, he would always make money, his life would gradually get better, and he could support his younger brother's education.
With savings, Xiaobao is not idle. He wants to earn more. After all, he can't make a living under his uncle. He has heard his aunt say behind his back more than once that he eats too much and does not work enough. Xiaobao feels a little aggrieved. He gets a monthly salary of 2,500 and pays 500 for food. He gets up early and goes to bed late. He does all the dirty work. But Xiaobao also knows that he can't talk about this kind of grievance. If he does, others will say that he is a white-eyed wolf and ungrateful. Therefore, Xiaobao desperately wants to make money.
In fact, a young man like Xiaobao who dropped out of high school is a strong laborer everywhere. Although this word is a bit unpleasant, given Xiaobao's conditions, even if he goes to clean in a hotel, he will not earn 2,500 a month. Why should he learn decoration from his uncle? We have also asked him this question. He smiled and said: It was his mother's decision. He was afraid of being bullied outside, but he would never be bullied under his uncle. Moreover, he could learn some skills and work alone in the future.
But Xiaobao's mother doesn't know that sometimes the ones who bully others the most are her own family members.
In June 2019, the price of Bitcoin skyrocketed from 3,000+ US dollars at the beginning of the year to 9,000+. Friends around Xiaobao began to speculate in Bitcoin. After some people made money, they packed up their packages and went home to build a house. Seeing someone making money, Xiaobao also started speculating in Bitcoin, and withdrew all the 10,000 yuan in Yu'e Bao, preparing to invest in Bitcoin.
Xiaobao didn't understand what Bitcoin was, so he was very careful. He first bought 5,000 Bitcoins. Unexpectedly, the next day he saw that his account had an extra 100 yuan, which was his day's salary. He was very happy. I started searching for Bitcoin information on the Internet and found that Bitcoin’s growth rate reached an astonishing 167% from the beginning of the year to June. Compared with Yu’e Bao, it is simply as high as heaven and earth.
After tasting the sweetness of Bitcoin, Xiaobao successively purchased Ethereum and EOS coins because eggs cannot be put in the same basket. This was what the person who taught him how to speculate in coins told him. After waiting for a week, Xiaobao opened the exchange again and found that his account actually made a profit of more than 1,000 yuan. For the first time, Xiaobao felt that making money was easy. Looking at the clear water noodles in his bowl, Xiaobao couldn't hold back his tears. He smiled again and firmly believed in the idea of making a fortune through digital currency.
Later, Xiaobao’s friend told him that he opened a Bitcoin contract and made more than 10,000 yuan at a time. Hearing this, Xiaobao felt very excited and envious. He thought that if he earned more than 10,000 yuan by signing a contract, that would be half a year's salary, and he could also send the money home.
Xiaobao was excited. Because he had no savings, Xiaobao only dared to test the water with 2,000 yuan, opened a very low leverage, and made money, earning 1,500 yuan. Xiaobao's inner desire for money was infinitely amplified. The profit of his first transaction exceeded 50%, and it was completed in just a few minutes. Xiaobao felt that his wish to buy a house in the city was not that difficult to realize.
After that, Xiaobao was not satisfied with the current profit. He felt that his profit was small because of his small capital, and he was also afraid of missing the opportunity to make big money, so he swiped his credit card and took out an online loan, totaling 50,000.
Marx said: When the profit reaches 100%, they dare to trample all laws in the world; when the profit reaches 300%, they dare to risk hanging! In order to make a 300% profit, Xiaobao started his Bitcoin contract journey, and he was not blind.
Xiaobao read books about trading, studied K-line charts, joined the currency circle group, learned from the experiences and lessons of the big guys, followed the rules of "light positions, low leverage, high guarantee", and slowly made contracts trade. Because he was afraid that too many transactions would affect his judgment, Xiaobao also deliberately set a limit for himself to not trade more than twice a day. It started very smoothly, and Xiaobao earned at least five to six hundred thousand, which was enough to build a nice house in Xiaobao's hometown. Xiaobao mailed most of them to his parents, and also applied for credit cards and online loans. After getting out of his uncle's hands, he began to concentrate on speculating in coins.
Xiaobao would stay in a rented house every day and spend most of his time watching the market. In order to facilitate transactions, he also bought a computer. On September 20, there was an upward adjustment trend in the market, and rumors began to circulate in the currency circle that there would be a bull market after the Bitcoin halving in 2020. Xiaobao decided to seize this opportunity and cash out the remaining money and credit cards. Money, a total of 230,000, was fully opened for Bitcoin quarterly long orders at $10,300.
Xiaobao originally thought that he would be harvested, but unexpectedly he was harvested by others. After the order was opened, Bitcoin traded sideways for about 4 days. Finally, on the night of September 24, Bitcoin fell below 10,000, and Xiaobao’s highest profit for long orders was negative 82%. Xiaobao was hesitant to close his position, but he also thought that the banker was deliberately creating market panic and wanted to cut off retail investors' leeks. Xiaobao suppressed his anxiety and did not close the position.
The next morning, Xiaobao saw a text message on his mobile phone saying that he had been "forced to liquidate". All 230,000 yuan is gone, not only the savings, but also the credit card money. Xiaobao thought that it would be better if he closed the position at that time. After all, it was 230,000. He might have to work for two or three years to save so much money.
Xiaobao’s mother didn’t dare to tell her family about the liquidation. She was still wondering why Xiaobao didn’t continue to send money to her family.
Later, Xiaobao found a job in a hotel and learned digital currency trading knowledge in his spare time. Asked why he didn't quit, he said that once you taste the taste of making quick money, you become addicted and can't quit. I am also a leek.
After he finished talking about this experience, everyone in our group was booing, saying that he was only twenty years old and spoke in such an old-fashioned way, which was really unbearable. Xiaobao also understood what we meant to comfort him, so he sent us a red envelope and stopped talking.
As investors, we certainly know that contract trading is a high-risk activity, and many people advise against it. But behind high risks are high returns. It is difficult for people to resist the temptation of money. After all, everyone has their own destiny for wealth. I just want to use Xiaobao’s story to tell everyone that contract trading is a high-risk trading behavior. If you are doing contract trading, please remember:
(1) Pay attention to market news.
(2) Light position, low leverage, high guarantee.
(3) No stud
(4) Infrequent transactions
(5) Pay attention to stop profit and stop loss.
For those new to the currency circle, they always hear others saying that they should not touch contract trading, but they don’t understand what contract trading is? To popularize the science, contract trading is a financial transaction method in which both parties sign a contract to exchange assets under predetermined conditions at a certain time in the future. Contractual transactions typically involve an agreement between a buyer and a seller that sets out the terms, price, delivery date and other relevant details of the transaction. An important feature of contract trading is leverage, which magnifies investment returns by using borrowed funds to trade. This means that investors can control larger value assets with less capital. However, leveraged trading also brings risks, and losses will be magnified accordingly. Contracts make money and contracts spend. Some people are very addicted to gambling. They want to get rich overnight, throw risk control out of the window, and do not hesitate to borrow money everywhere. As a result, there are holes everywhere that can never be repaired, leading to a road of no return. Therefore, people who think about getting rich by contract often end up losing money suddenly.