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Contract trading may seem to have low barriers to entry, but in reality, it is fraught with hidden dangers. Some traders, through strict discipline, have turned a principal of 3,000U into 280,000U. Behind this is not luck, but an extreme control of risk.
Contract trading can indeed lead to quick profits, but it can also result in instant liquidation. High leverage is a double-edged sword. For example, splitting a 300U principal into ten parts, each opening a 100x contract with 30U—if the direction is correct, a single point can double your money, but if wrong, losses can be just as rapid. That’s why discipline becomes crucial.
**First Rule: Stop-loss must be executed**
Close the position immediately when reaching the stop-loss point; do not hope for a rebound. Taking a loss is painful, but compared to the outcome of liquidation, it’s a small price. The market will not wait for your luck.
**Second Rule: When consecutive losses occur, trigger a circuit breaker**
After five consecutive stop-losses, forcibly exit the market. At this point, the market is in chaos, and forcing trades is equivalent to giving away your money. Calm observation often provides clearer insight.
**Third Rule: Lock in profits**
Floating gains do not count as real profits. Withdraw at least half of every 3,000U earned into your spot wallet. Only when the assets are in your pocket do they truly belong to you.
**Fourth Rule: Only trade in clear trends**
100x leverage is a weapon in a trending market, but a mine in a choppy market. When the direction is unclear, it’s better to stay on the sidelines and wait for a trend to form before fully engaging.
**Fifth Rule: Keep your position size controllable**
Never open a position exceeding 10% of your total principal at one time. Using a 30U lot size means you can afford to lose, which allows for steady gains. Small positions bring peace of mind, and a calm mind enables precise operations.
The essence of contract trading is discipline fighting human nature, not gambling on luck. Without strict adherence to standards, you will only become part of the statistics of liquidation. Embed these five rules into your trading logic, and in the long-term battle in the crypto world, you will have a chance to come out on top.