#合约怎么玩 Why do so many people in the crypto world play long contracts and get liquidated?

In fact, contracts are not intended for ordinary players.
1. Capital management must pass. With leverage of 0-100x, short-term losses are inevitable. The risk per single trade should generally not exceed 2%-3%, while aggressive traders may go up to 5%~8%. Exceeding 8%~10% of risk, the drawdown in unfavorable periods can reach 70%, and the psychological breaking point for most people is around 50%. Strict implementation of capital management is necessary.
A lot of people, like 5x, 10x dry, do the level of more than 4h, more than 4h level of stop loss in 5%-15%, a single risk has reached 25%, this is the same as looking for death. In order to ensure the degree of risk at the same time, and at the same time ensure that the high leverage is opened, the level must be lowered to the level of 1 hour, 15 minutes, or 5 minutes.
The smaller the level, the fewer players can handle it. Generally, 1h-4h is the limit that a player can handle, 5-15 minutes is what professional players can handle, and even professional players cannot handle the 1-minute level.
2. Trading system · Must pass. And to hone the trading system, it is necessary to accumulate long-term trading experience. The sign of successful running-in is to not operate outside the pattern, and to have clear condition definitions. In this process, continuous iteration is required, and it needs to withstand the baptism of bull's ability to shake the market and the shanzhai mainstream. Because it is Margin Trading, t+0, frequent trading, you need to prepare 90%X9 tuition fees. Many people come up with tens of thousands of dollars to play. One thing must be clear, no matter how much starting capital, it is only enough to pay tuition fees once, and there are 8 more times to go. Therefore, you must do it with small capital, a few hundred or a few thousand, and don't add capital when you make a profit, withdraw the profit, and continue to use small capital to do it. At the beginning, the system and operation are not particularly skilled, and many errors and unnecessary actions cannot be avoided. Many posts say how much they lost. In my opinion, such losses are meaningless, just paying tuition fees once, without even touching the door, the learning curve has not gone up, and it is no different from gambling.
3. Execution must be guaranteed. Similar to last year's 519, once you make a wrong bet, it will be irreparable. Even if you earn a little money before, if you don't survive a black swan event like this, it's as good as zero. Strict stop loss is a given, and going long to catch the bottom is also a way to get liquidated. Similar to the recent Luna9, going against the trend to catch the bottom and getting liquidated. Don't gamble on low probability events, and don't expect to achieve everything in one move.
4. Time and experience accumulation. A round of bull can shake the market, need to be familiar with the market characteristics of different varieties in different stages, and adjust the strategy according to the market conditions.
For retail investors, they have limited time to spend in this market, so it is naturally difficult for them to participate in such a professional market. Here are a few suggestions.
1. Try with small capital. 2. With leverage of 2/3 or less, under the premise of looking at the big picture, make a good capital plan and consider rollover operation. 3. Trade on the 1-hour, 4-hour, or daily candlestick timeframe. 4. Without sufficient conditions, non-professionals should not engage in short-term contract trading, and the desperate should not engage in professional trading. 5. Without completing the previous 4 items, do not invest more than 20,000, treat the losses as if playing with pocket money, and don't feel bad about it.
In fact, in terms of difficulty, contracts are more cruel than arbitrage and Spot in terms of results, don't just look at the top few people, they are all coaxing retail investors into the market, who doesn't know that success often comes at the expense of many failures.
Hope for fewer tragedies, more rationality. Light Position, go with the trend, stop loss. The above suggestions are aimed at saving your Wallet, so that you don't get trapped in the gambling pit and go down the road of no return. If you have 2000 yuan in your pocket, why do you have to trade contracts? Even if you make ten times in a year, you will only earn 20,000 yuan. It's better to set up a stall for a month. Even the best long-term people end up getting stuck in a rut. You insist on doing it and the opportunity cost is higher than other paths, so do it according to your own capabilities.
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