I stopped the short position after losing 10,000 yuan:
I placed a short position when I was sleeping last night, and it was traded in the morning, and the highest price of the coin was 1.6. When I woke up, it was 1.4, and the lowest was 1.3. My cost was about 1.3.
I stopped the order at 1.63, and lost nearly 10,000 yuan. Later, the coin rose to 1.96. If I didn't stop the loss, I would have blown up the position, and I would have lost more than 20,000.
Reversal:
1. It was indeed a black swan. The amplitude of this coin exceeded 60% overnight, and the amplitude of 24 hours exceeded 100%.
2. After seeing the situation in the morning, I should have stopped the loss, at least I shouldn't have added positions (I added another 1/3 of the position) ~ because it didn't break the line, and based on past experience, it is likely to rise sharply, but because the funding rate is positive (favorable to short positions), and coupled with loss aversion, I thought about taking another short position.
3. Unexpectedly, the funding rate went from positive to negative in less than 2 hours, which was really amazing (I couldn't beat the dealer, and I guess many retail investors were shorting). At this time, I decisively stopped the loss.
4. If you encounter a coin with such a clear dealer, you should stay away from it, because if you go against the dealer, you will only die miserably (the dealer has a lot of chips, and he can pull it up or smash it as he wants).
5. In the long run, stay away from short-term transactions. If you must trade, try not to short.
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