Do you doubt life when trading contracts? 90% of people fall into these traps, think carefully before deciding whether to engage!
Contract trading fundamentally has no 'guaranteed profit with no loss'. To avoid losses, first recognize these 5 harsh truths:
1. Risk is directly maximized! The cryptocurrency market itself is volatile, and contracts come with leverage, effectively multiplying the risk by several times or even dozens of times—once you enter the market, the risk is almost 100%, with no exceptions; don't fantasize about 'making a small profit and then running'!
2. Don't be deceived by 'fair competition'! Many exchanges hold a large number of chips, able to push or crash the market at will, specifically targeting retail investors' positions to 'trap' them. What you think of as a 'trend' could just be a liquidation trap set by the big players!
3. Greed is the root of losses! Contracts magnify profits, making it too easy to provoke human greed: wanting to earn more when in profit, wanting to break even when in loss, sinking deeper and gambling crazier, ultimately not only losing all the principal but even accumulating debt. There are too many such tragedies!
4. Professional thresholds far exceed expectations! Trading contracts requires a thorough understanding of data, comprehension of models, and insight into financial logic. Quantitative institutions operate based on computing power and models, while retail investors relying solely on observing candlesticks and listening to news are simply not on the same level!
5. No time to monitor the market = giving away money! Do you think the profits you've earned are secure? In just ten to twenty minutes, the market can suddenly reverse, turning profits into losses, even leading to liquidation, with no chance for stop-loss—if you don't have time to monitor the market, then don't touch contracts!
To be frank: if you lack professional skills, never mess around with contracts! Either stay far away or find reliable people to follow for trading. Randomly opening positions, increasing leverage recklessly, and gambling based on feelings will lead to only one outcome—liquidation, then liquidation, ultimately completely doubting life!