Recently, the fee rates have become extreme again, and the group is arguing: is this a reversal or just more bubble squeezing? To be honest, I’m the type who’s stubborn in words but soft in actions. When I see the fee rate explode, my first instinct is to try to take the opposite side, but as soon as I reach for the open position button, I start to chicken out... First, I check if the open positions are still increasing, and if the large orders on the order book are “pushing against” the trend. If both are enthusiastic, I’d rather reduce my position or even hide away, to avoid taking a flying knife head-on.

My mom also asked me, “If the fee rate is high, does that mean you can make a profit?” I said it’s not that simple; a high fee rate only shows that everyone is squeezing on one side. How long the squeeze lasts and which side will break is really hard to say. Anyway, my current principle is: extreme fee rates = survive first. If I really take the opposite side, I’ll also set a short stop-loss. If I’m wrong, I admit it, review my mistakes, and stop being stubborn.