Five Taboos in Contract Trading

1. Investment Compulsion Syndrome

   This is a common ailment among all investors, with symptoms such as: feeling restless when not holding any positions and feeling the need to place orders; experiencing panic when holding positions, not knowing what to do when the market moves against the position; constantly wanting to trade, resulting in increasing losses.

2. Frequent Trading (All-Weather)

   Many investors want to be all-around players, going long when they've gone short, and going short when they've gone long. Although they hold themselves to strict standards, this goes against the importance of following the market trend. When one force has not broken another force, do not entertain thoughts of going in the opposite direction. In a bull market, go long, close long, go long again, and close long again… In a bear market, persist in opening short positions, closing short positions, opening short positions again, and closing short positions again…

3. Counter-Trend Rebound

   Can you catch a rebound? If the method is right, of course you can. Otherwise, it's like licking a knife. If a knife falls from the sky, when should you catch it? Without a doubt, it's only after it has fallen to the ground and is motionless. Otherwise, you will surely end up with many wounds. Catching a rebound requires a certain skill. Those without experience need not take risks; just follow the trend, and when participating in a rebound, pay attention to capital management.

4. Full Position Trading

   Full position trading may quickly increase your wealth, but it is more likely to lead to rapid liquidation. Nothing is absolute, and even funds cannot completely control the impact of sudden events, policy changes, or news. Never go all in; each position should not exceed 30% of total capital, and at most, control it to 50%, to guard against additional positions or other occurrences.

5. Refusal to Admit Defeat

   Many cryptocurrency investors have a stubborn temperament and never admit their mistakes. They fail to resolve their wrong positions in a timely manner, leading to the continuous continuation of their mistakes, with predictable consequences. "I just don't believe it won't rise, I just don't believe it won't fall…" This kind of mentality must not be entertained. When admitting one's mistakes, do not harbor any illusions and resolutely cut losses at the first opportunity.

In this industry, many people only know about Li Xiaolai, the richest Bitcoin holder, but they do not know that in 2011, Li Xiaolai bought 2,100 BTC at an average price of $6, which later dropped to below $1, resulting in a 97% loss of assets.

They only know that Zhao Changpeng made it onto the Forbes list of billionaires, but they do not know that in 2014, he sold his house in Shanghai and went all in on BTC, only to regret it deeply as it plummeted.

They only know that Zhao Dong is a big shot in OTC trading, but they do not know that in 2013, after buying 2,000 BTC for 1 million, his assets exceeded 100 million, but in 2014, he experienced three futures liquidations, with a total loss of 1.5 billion and debts of 60 million, leading to a collapse!

If you can endure, spring will come!

Nowadays, whether playing contracts or spot trading, most people only focus on immediate benefits, without considering future market value!

In the cryptocurrency industry:

1. There is no bottom when it falls.
2. There is no limit when it rises.
3. If you cannot bear the panic of 1 million turning into 10,000, you cannot enjoy the blessing of 1 million turning into 1 billion.

I am Mr. Coin in the cryptocurrency circle! I regularly publish market analysis and guidance strategies, and also provide real-time price calls from time to time! Our team is carefully crafted by Mr. Coin and more than 20 top analysts in the industry, specializing in various technical indicators, analysis of candlestick patterns, and in-depth interpretation of fundamentals, aiming to provide technical support and risk management for cryptocurrency enthusiasts for free.

For more real-time positions, follow my public account to learn about market technical analysis, how to escape from positions, and more. With years of market research, I have studied the major trends in the cryptocurrency circle and have studied and guided BTC, ETH, DOT, LTC, FIL, EOS, BCH, ETC, and other cryptocurrencies. For those who are not familiar with trading, you are welcome to study and learn together.

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