Why Do I Always Lose When Playing Contracts (Why Playing Contracts Always Leads to Loss)

Why do I always lose when playing contracts? Contract trading is a new concept in the blockchain world and is known as “investment management” in the traditional financial industry.

Let’s briefly introduce digital currency and the futures market. It is a global financial derivative exchange platform composed of decentralized pools of funds formed by various currency pairs. It allows users to buy, sell, and store value in a fairer and more transparent manner. It also enables people to automatically increase leverage and manage risks through smart contracts.

When you play contracts, you will find that you have become a high net worth investor. And if you don’t understand contracts, there is no need to pay attention to this field. So why do I always lose when playing contracts? Why do I always lose when making money with contracts! This article will tell you the answer:

First: many friends ask me if the price of Bitcoin will rise to $50,000 if they want to buy spot. My answer is, if you want to sell Bitcoin or other cryptocurrencies, I will invest all my money because the price of Bitcoin is getting lower and lower (and it is falling rapidly), and many people may not think so. Therefore, I believe that Bitcoin as a speculative tool is flawed. So in my opinion, I should do risk control and stay calm in my investments.

Second: many friends often say that they earn more money than others by speculating on cryptocurrencies, which is the most terrifying thing. However, I admit that people in the stock market are always greedy. So I say, as long as the person who doesn’t make you lose money is willing to bear this kind of loss, you cannot guarantee that your profits will be maximized.

Third: some investors may feel that they have missed the best market conditions but also feel afraid. They usually choose to continue holding and accumulate more chips on their principal to pursue greater investment returns.

Fourth: many players only focus on short-term operations when it comes to market conditions, especially for highly speculative altcoins. Although these investors have several methods, I still prefer those less professional strategies. For example, a $100 position can only use 30 cents, but in fact, it only takes him 1 minute to complete. That is to say, he has $20 in his account, even if he has $10 left, he cannot wait for several days.

Fifth: many people start looking for various hedging methods after experiencing losses. This is a common trick in the market: first look at the market situation, and then chase after some targets. In this case, profits will decrease, and the people entering the market will become smarter, and naturally, profitable people will have a good mentality. Of course, this has its drawbacks: first, due to the volatility of the market, ordinary people face great difficulties in operations. Second, frequent occurrence of stop-loss phenomenon during trading leads to significant losses, especially rare pump-and-dump techniques from market makers, which will cause substantial losses when they start boosting. Third, my personal judgment of the market’s health. To summarize, most people’s operations are basically after two waves of market trends during a general bull market.

Why Playing Contracts Always Leads to Loss

Editor’s note: This article is from the Fenhulun Community (ID: FHBT18), author: Peipei, authorized reprint by Odaily Star Daily.

Hello everyone, I’m Peipei. The market has been rising sharply these days, and I can’t believe that I’m still a “leek”? But I think many friends will still find a problem when looking at the market:

The first problem is that contracts themselves do not have much technical content. Moreover, there are various things appearing in this market from time to time, so if these things are regarded as investment products, are they too unstable?

The second problem is the relatively rare “tricks” in the current market. For example, can the large coins in your hand drop to $10, or can your tokens be stolen by others by a certain amount, then are there people willing to buy such high-yielding products?

Of course, some friends believe that this is a misunderstanding of the market, but does that necessarily mean that they haven’t lost money? In fact, there is also a saying here-that the risk of being “stuck” is greater than the risk of “cutting the flesh”.

First of all, we know that contract trading is a relatively complex field, and its rules are similar to digital currencies in the Internet era. It only needs to be described in simple language, generally in the form of digital tokens, and can be understood as a kind of virtual commodity. In fact, most digital currencies are represented by major cryptocurrencies such as Bitcoin and Litecoin, and they do not even have the underlying technology of the blockchain, but can be considered as pure software development tools. (That is to say, if you want to speculate through smart contracts), but before you actually start doing contracts, it’s best not to emphasize too much on whether this project is really useful.

Then let’s take a look at various altcoins and DeFi protocols on the market now. Some of them may indeed resemble the ICO bubble, but they did not issue coins after all. After all, they are not digital currencies issued by central banks. They are financial applications based on their own value.

In addition, for novice investors who are not familiar with the traditional stock market, it is easy to overlook the following example: some time ago, I saw on the Coin Circle that an account on the EOSIO.token exchange sold about $20 million worth of Ethereum, and then it went online with a new contract trading platform called Binance after a year, and then it found that this platform already had a large number of new users and they continued to increase their holdings of ETH and other altcoins. In short, the liquidity of the entire platform is very sufficient.

Finally, from this data, although almost all mainstream contracts in the current market are experiencing a downtrend, in fact, over the past year or so, most new users choose to enter the market, which also leads to a lot of people experiencing losses.

Based on historical experience analysis, the situation of “the small retail investors beat the big players” is not new, but in fact, in the past few months, the overall market has been dominated by two waves.