The cryptocurrency trading is a long-term plan, not a matter of overnight success, so there should be no haste. Even if there is a short-term loss, there is nothing to fear as long as the subsequent direction is chosen correctly, the lost will eventually return. However, it is important to grasp the timing of trading and the current market trends in order to increase the winning rate. At the same time, investment is a process of growth. Mr. Coin suggests that everyone should learn and operate at the same time, and timely self-reflection on gains and losses, deepen the understanding of risks, and plan with the correct mindset in order to reasonably avoid risks and become a qualified investor.

Friends in the cryptocurrency circle are no strangers to "contracts", so many have heard some legendary stories, such as the very popular Liang Xi, who made tens of millions with $1500. Newcomers to the cryptocurrency circle have only heard many people say how profitable contracts are and that leverage can be used, but they have not correctly used this derivative.

For more real-time trading strategies, online technical learning, and exiting strategies, you can follow the mentor's official account (Mr. Coin in the cryptocurrency circle) to obtain the method of adding: the top ten daily can receive free exit strategies.

Many newcomers to the circle want to make big money as soon as they enter, cannot accept the low returns of spot trading, and want to make a big profit quickly, so they choose to play with leverage by opening contracts. Most people who have just started trading cryptocurrencies have a low psychological tolerance. Once they incur losses, they will fall into extreme self-blame and negative emotions. If you have set your own risk tolerance, you can use a portion of your assets to try, as practice is the best teacher!

Many newcomers who trade contracts are easily misled, thinking that it is a matter of buying big or small, but they overlook a very serious detail, which is the control of the overall market trend. Here we call it judgment. For example, in a situation where the overall market trend is very poor, insisting on buying when it is rising is very likely to lead to losses. Before trading contracts, please make your own judgment on the overall market trend, based on the operation status of the cryptocurrency market, recent reports on the currencies you want to open contracts for, and a judgment on the future operating range of the currency.

The most exciting part of trading contracts is determining whether the currency will rise or fall in the future. You can choose the appropriate leverage to increase your return rate. For example, if you use 10 times leverage to open a position for trading, and the price drops by 2%, your loss will be magnified by 10 times, resulting in a 20% loss. These trades are not as small as stock fluctuations of 1% or 2%, they are very random. It is possible that the big bull of the platform, the big institution, is happy today and sells a lot, causing the price to plummet. At this time, you may make more profit or lose more, depending on your direction and judgment of the market.

When we have bought and it falls (rises), what should we do? Here we need to understand the significance of stop-loss. Many cryptocurrency enthusiasts may ask, "Stop-loss means losing money. Originally, we only had unrealized losses. If we really stop-loss, then we will actually incur losses." But this understanding is too shallow. Someone on the internet gave a good example, saying that stop-loss is like a seat belt in a car. Most of the time it is not useful, but when you stop-loss, there is often a situation of a large rise. Some people stop-loss during a period of volatility and then reverse, resulting in continued stop-loss. Stop-loss is not used to lose money, the bottom line is not to be stepped on, the handrail is not for support, these are all your last line of defense, all to ensure your safe trading, and to minimize your losses as much as possible.

Some enthusiasts may think, "Let's wait and see, maybe it will come back in a while." This kind of holding mentality is essentially a gambling (luck) mentality. If you are lucky, you can continue to hold on, and naturally you will feel that you are not wrong in holding. But suddenly, if you are liquidated, that's it. For example, the negative comments made by BM about eos in the past, originally just a slight pullback, many people thought it was okay to continue holding, but the comments escalated uncontrollably, and the big players took the opportunity to sell off, resulting in a lot of liquidations. This is the devastating blow of the black swan event against holding positions.

So how can we minimize these risks as much as possible?

First, we need to set our own risk tolerance. For example, if your initial investment in cryptocurrencies is $10,000 and you can tolerate a loss of $5,000 in contracts, then you can use this $5,000 as your contract fund. If it exceeds your own loss, stop first.

You can trade with a small position, the pressure is not so great, and your mindset will be better. After all, with a small amount of capital, you won't feel so heartbroken if you lose, just consider it as practice.

The higher the leverage, the higher the risk. Of course, the return and risk are also proportional. The lower the margin, the higher the probability of liquidation, and the more fees you will incur. Once liquidated, take a break and then re-enter the market!

True investment is not just the accumulation of money, but more importantly, the expansion of contacts, the broadening of vision, the continuous upgrading of life realm, the continuous improvement of emotional intelligence in all aspects of life, the continuous iteration and adjustment of values. Truly becoming the master of wealth.

Mr. Coin's message:

People often run throughout their lives, and running is not about a momentary outbreak, but depends on persistence along the way. Many times, success comes from persistence. Before everything is conclusive, we should not stop. Only in this way can we continue to progress in self-growth and self-transcendence, and affirm ourselves. In conclusion, profits can take care of themselves, but losses will not resolve themselves, so pay attention to risk control. The current market trend is biased towards an upward trend, so everyone is encouraged to operate with the trend.

For more real-time trading strategies, you can follow the official account of the author to obtain them. You can also learn about online market technical analysis and exiting strategies. The author has studied the market for many years, analyzed the major trends in the cryptocurrency circle, and provided guidance on currencies such as BTC, ETH, DOT, LTC, FIL, EOS, BCH, ETC, and others. For those who do not know how to operate, you are welcome to study and learn together.

This article is exclusively written and shared by Mr. Coin in the cryptocurrency circle, representing Mr. Coin's exclusive viewpoint. The article is sent with a delay, and the risk is self-borne. Reasonably control your positions when trading, and do not over-leverage or go all in. Mr. Coin hopes that all fans and friends can achieve financial freedom together, and progress together. In the depths of time, grasp an understanding, and in investment, learn to be optimistic. Do not let the future you dislike the present you. We live a real life, but not every piece of data needs to be taken seriously. Let the past go, and let the future come faster! Rest well, prepare yourself, and get ready at any time. Let's go!

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