Lao Cui said about coins: The bull market is coming, what should be done with the contract?

CN
1 year ago

Hello everyone, I am your friend Lao Cui Shuo Bi, focusing on the analysis of cryptocurrency market trends, striving to deliver the most valuable market information to the majority of coin friends. Welcome the attention and likes of the majority of coin friends, and refuse any market smokescreen!

Let's talk about the future trend in this article. Recently, I have been talking to spot users. Many of you have made a lot of profit, especially those who bought Binance Coin with Lao Cui. In just one or two weeks, it doubled unexpectedly. This speed is a bit beyond Lao Cui's expectations. Although it is beyond control, it is also reasonable. In a bull market, anyone can make a profit, which is not Lao Cui's credit. Let's talk about contracts. Lao Cui usually avoids contracts and basically equates them with gambling. But for users with small capital, it is indeed an opportunity to quickly turn things around. I have discussed the capital size of spot trading before. For those who do not have the capital equivalent to ten Ethereum, you can look at the trend of contracts, but I don't encourage everyone to gamble.

Regarding the leverage of contracts, it should be increased to the point where the capital can buy ten Ethereum, and there is no need to mention positions of 50 or even 100 times leverage. The higher the leverage, the more distressed Lao Cui feels. The stop-loss point for a single entry is less than 100 points for Ethereum and less than 2000 points for Bitcoin. After entering the market, almost everyone feels uneasy and cannot eat or sleep well. There is no need to do this with leverage. Lao Cui has always emphasized that contracts should be treated like spot trading, especially in the current market. The basic direction has not changed much. If you can hold a contract equivalent to 10 Ethereum, you will basically have the ability to switch to spot trading after making a profit of 1000 points. When entering a contract, there must be a target to follow, and do not be influenced by the market. Many friends start thinking about 3000 after starting at 2000, and then start thinking about 4000 after reaching 3000. This dragging on for a long time increases the risk.

Many friends have said that they will definitely sell at 4000, but when it reaches 4000, they are reluctant to sell. They keep dragging on, thinking that they can sell at a historical high even after a slight pullback. If there is a slight pullback, it becomes even more difficult. It is very easy to be influenced by the market, leading to inner instability. If the capital in your hand is less than 30,000 WU, you can indeed double or even quadruple the contract, enough to have 10 Ethereum, and the liquidation point can also be controlled to around 1000. Currently, the timing of entering contracts is better than spot trading. Even if a wave of short selling comes, it is still possible to change direction in time.

The users currently led by Lao Cui are indeed doing contracts, but most of them can control themselves, know their goals clearly, and switch to spot trading after making a profit. Everyone should be clear that contracts are just a springboard for everyone. After accumulating the original assets successfully, you must be steady. Especially in the current market, Bitcoin has almost stabilized at the 72,000 WU mark, and the 4000 mark is also in a state of contention. Once these two stabilize, the upward trend will continue, as I clearly explained in yesterday's article. Following the overall trend, whether it is contracts or spot trading, can be profitable, and the profit from contracts should be greater than that from spot trading. If you cannot achieve these, it only means that everyone's entry method is problematic.

Next, for those who short, it is impossible to follow the trend. After reaching a new high, it is basically over within half a day. If the time drags on, the market will reverse again, continuing the overall bullish trend, and everyone will be quite passive. The recent trend and the coordination of capital can be seen. The depth of the pullback will basically not touch the previous low point, which is to harvest all the retail investors who are bearish. The continuation of the market is an inevitable result. The higher the market goes, the fewer retail investors sell, and the market will definitely go higher. Therefore, Lao Cui does not advocate shorting in the near future, unless the deep pullback can break through the previous low point and support level, and then you can short after the market reverses, but you must follow the overall bullish trend before it arrives.

The position of entering contracts can only be maintained at 10% of the entry, and subsequent profits can be gradually increased. Once you incur losses, do not add to the position. Just stop the loss if you make a wrong call. Here, I have to mention our Yan, who was reluctant to stop the loss after making a wrong call, ultimately leading to his own liquidation. It is very likely to be liquidated when shorting, after all, going against the trend will not end well. Even if you are lucky enough to make a profit once or twice, a slight mistake will wipe out both the previous profits and the principal. Currently, contracts are not impossible to do, but it depends on how everyone does it. If you make a profit, you must exit in time, and with the capital, you can switch to spot trading. It can be said that the contract period in Lao Cui's hands is basically half a year, and with capital, it is spot Ethereum. The current return on spot trading is not low because the period of spot trading can be extended, and there is no need to consider the liquidation point. In the end, it will definitely be profitable!

Finally, let's talk about the future trend. The optimistic position for Bitcoin is indeed around 100,000 WU, and there should be no problem for Ethereum to reach the 5000-6000 position. The only thing to worry about is everyone's profit target. Do not think that you can hold out for a historical high. Find a relatively low point and exit. After all, Lao Cui cannot see through everything. Once there is any change, everyone must exit in time. Do not care about gains and losses. As long as you are in a profitable state, you can exit at any time. There is no specific point for everyone to refer to. Once Bitcoin falls below the 65,000 mark, the downside space will be completely opened up, which is the first position for everyone to short. As long as it falls below, there will be more than 20,000 points of downside space. If it does not fall, it is still bullish!

Lao Cui's message: Investment is like playing chess. Masters can see five steps, seven steps, or even a dozen steps ahead, while those with lower skills can only see two or three steps. The high-level players consider the overall situation and the general trend, not focusing on every move, with the goal of winning the game in the end. The lower-level players fight for every inch, frequently switching between long and short positions, only fighting for short-term gains, and frequently end up in trouble.

Original article created by public account: Lao Cui Shuo Bi. If there is any infringement, please contact the author directly to delete.

This material is for learning and reference only and does not constitute investment advice. If you buy or sell based on this, you do so at your own risk!

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