Risk management in contract trading

Contract transactions are leveraged and highly multiplied, and cryptocurrency prices are highly volatile. Therefore, compared with other investment markets, the risks of encrypted contract transactions are doubled, and risk management is particularly important.

As a qualified trader, you should have the ability of risk management (stable trading system), which should be reflected in the following aspects:

1. The growth history of the currency circle - what is cryptocurrency? Some of the most basic noun concepts: blockchain public chain DEFI metaverse web3.0 mainstream currency altcoins, etc.; analysis of the fundamentals of the entire currency circle - selection (old coins with market value that have crossed bull and bear have the possibility of application and operational expectations white paper and team work); current hot projects in the industry are the outlets

2. Trading strategy—different from person to person: signal entry point, stop loss and take profit setting, leverage control, position management, response to emergencies, etc.

3. Mentality management: trading is the biggest game with human nature

Risk management requires careful planning and strong execution, and integrates a trading system that suits you in taking risks and controlling risks!