Suggestion Three: Avoid Passionate and Emotional Trading

Passionate and emotional trading are the two main causes of failure for investors in the cryptocurrency market. Especially in contract trading, once investors lose their composure, it is easy to make erroneous decisions, which can lead to liquidation.

In the cryptocurrency world, many investors find it difficult to control their emotions when faced with market fluctuations. For example, when the market shows a downward trend, some investors unwilling to incur losses stubbornly hold onto their positions,

trading against the trend. Even when they know the situation is unfavorable, they cling to their views until all their account funds are exhausted, ultimately being forcibly liquidated. This emotional trading often accompanies a strong sense of “hope.” Many people hold onto that last glimmer of hope, expecting the market to reverse, only to face the consequences of liquidation in the end. Emotional trading is not just a neglect of technical analysis, but also a blind adherence to market trends.

The most important thing is to remain calm and clear about your actions; in contract trading, the consequences of losing control of your emotions can be very serious, regardless of whether the market is rising or falling, logic and objectives must prevail.

Suggestion Four: Small Coins Carry High Risks, Not Recommended

For contract traders, small coins carry significant risks. If not handled properly, you could lose nearly all your funds. Although small coins often have larger price increases compared to large coins, they also exhibit significant volatility. Especially in the face of small coins that lack strong technical support and market recognition, many investors, once they enter, will face substantial risks.

Even if you can execute 10 trades correctly, one wrong move could wipe out all previous gains. The market for small coins is usually quite unstable; once the inflow of funds is insufficient, price fluctuations can be extremely severe, making it difficult to manage risk.

Therefore, as a contract investor, I personally do not recommend trading small coins. You may pay attention to some coins with technical support and market prospects, but do not blindly follow small coin trades. After all, stable trading is far more important than blindly chasing highs and selling lows.

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