How to avoid getting liquidated in contract operations?


In fact, I have tried to build multiple operating systems. I have carefully designed valuation models for cryptocurrencies, criteria for buying and selling, strategies for selecting cryptocurrencies, and plans for holding periods. I have put a lot of effort into trading in both the stock market and the forex market. Now I bring these experiences to the crypto world, hoping to find my own path to success here. In the past six months, I have been liquidated five times in contract trading. This is undoubtedly a heavy blow for me, but also a miraculous experience in my crypto world career. After each liquidation, I tried to find various reasons and explanations, even complaining about the volatile market like many suckers. But one day, I suddenly realized like a bolt from the blue. I began to realize that overly complex operating systems may not be what I really need. I started to think if there is a way that can free me from the troubles of liquidation and make me more calm and composed on the path of the crypto world. So, I found my answer - strict position management. Although this trick is simple, it contains profound investment wisdom. It allows me to stay calm in the face of market fluctuations and avoid getting into trouble due to excessive leverage or heavy positions. I believe that as long as I can strictly follow this strategy, I will be able to go further and more steadily on the path of investment.
5. Ultimate Position Management: The Ultimate Line of Defense Against Crypto World Futures Liquidation! The fundamental cause of futures liquidation often lies in two points: excessive leverage and full position operation. These two, like a double-edged sword of position management, require careful consideration. Leverage and position complement each other. When you choose high leverage, you must correspondingly adjust your position to a minimum, and vice versa. We don't need to dictate the extreme fluctuations of the market, nor do we need to be overly emotional about the ups and downs of the market. The external world's changes have nothing to do with our internal decisions. All we need to do is to safeguard our position's safety. The market will always create waves at some point, but the safest strategy is to place ourselves in a solid fortress. You can occasionally peek out and feel the market's pulse, but never expose yourself to the forefront of risk. Therefore, extremely strict position management has become the core of futures trading. It is not only a strategy, but also an attitude, a reverence and respect for investment. For example, if the current price of EOS is 3U, if we can control our forced liquidation price for the contract at 1.5U, then no matter how the market fluctuates, we will be safe and sound. This is the charm of position management. It allows us to be more calm and composed in our investments, and more adept. There is an ancient saying: "As long as the green hills are preserved, there is no need to fear the lack of firewood." This is the essence of position management. Only by ensuring the safety of our funds can we stand invincible in the future market. Always adhere to the half-positionism in the crypto world, even dynamic half-positionism. Whether it's spot trading or futures trading, you can be adept. After experiencing multiple baptisms in the futures market, I deeply understand: the only secret to playing futures is position management. Even the stock god Buffett maintains a large cash reserve, so why can't we learn rigorous position management from them?
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YugeQuantitativevip
· 2024-06-24 04:11
Some coins can fall by several times in one go, only timely profit-taking and stop-loss are the way to go
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