How to Achieve Continuous and Stable Profits in the Contract Market:

Mainly divided into the following 9 parts:

1. Follow the Trend
Following the trend is well-known to many, but this situation also makes it easy for so-called big players to stop losses. Especially in a one-sided market, don’t casually think about changing direction. This can easily lead to reversing your position. Particularly when technical indicators are all at high or low levels and show no reversal signals, remember not to operate in the opposite direction. Commonly used indicators like MACD, KDJ, BOLL, moving averages, etc., have serious lagging issues. For me, I rarely look at these indicators. I’ve lost countless money and suffered many losses on them, so I basically don’t use them. Watching these indicators is less reliable than flipping a coin. When deciding to buy or sell, don’t analyze too many indicators at once, because each indicator reflects different signals—some indicate buy signals, others indicate sell signals. So, are you deciding to buy or sell at that moment? Maybe even you can’t tell if you should buy or sell? It’s dizzying. Such analysis is faster than flipping a coin, which at least has a 50% accuracy rate. If you really want to study indicators, don’t analyze more than two types, and thoroughly understand the indicators that suit you. Only then can you improve your win rate.

2. Good Entry Points for Buying and Selling
Buying is easy; anyone can buy. But selling is a different story. We buy to make money, so we shouldn’t sell at a loss. If we make a profit, we want to earn more before selling. That’s the biggest problem. With a good understanding of certain indicators, combine a simple rule: if the price has risen significantly or fallen significantly, you can choose to do the opposite—buy more or short. As long as you’re not greedy, you can generally profit. It’s just a matter of how much.

3. Strict Take Profit and Stop Loss
Take profit: In a strong trend, you can use trailing stop-loss methods to increase profit margins, accumulate little by little, and stop at the right time. Avoid greed for huge profits, stay optimistic but don’t forget the risks, and avoid chasing high prices recklessly. If you set a take profit level and reach your ideal profit, don’t rush to take profits; don’t try to earn more, or the market may reverse, and you’ll lose the profits you’ve already made. Stop loss: Once you place an order, set a stop-loss level immediately. Consider how much loss you can tolerate. If you’re not confident in your trade, set a smaller stop-loss. If you’re confident in your position, you can set a larger stop-loss. If your direction is correct and profits are continuous, you can raise the stop-loss level.

4. Control Position Management
Position management is also very important. Contracts are different from spot trading. Even if you buy all-in in spot trading, a 30% drop still leaves the coins. But in contracts, leverage amplifies risks—if you open 10x leverage and the price drops 10%, you get liquidated. So, don’t open full positions in contracts; at most, open 30-40%. Don’t open such large positions all at once. After confirming the market trend, open 5-10% initially, then add about 10% in the trend. In counter-trend situations, widen the spread to add positions or cut losses. This way, when the market reverses, you can quickly profit by lowering or raising your average entry price.

5. Avoid High Leverage Trading
Even if your market judgment is wrong, proper position management—adding when appropriate, setting stop-loss levels—can greatly increase profit potential if the market reverses. Small leverage may earn less quickly but carries lower risk. Small profits repeatedly accumulated lead to stable, consistent gains. A qualified trader isn’t about making a lot of money in one shot but prioritizes risk management, reducing errors, and maintaining steady profits. Many people open high leverage out of greed, which is the biggest reason for losses.

6. Reduce Trading Frequency
Bitcoin trades 24/7 with T+0 settlement. Especially at night in China, it’s best not to open new positions because you’re sleeping and can’t monitor the market in real-time. This often leads to excessive volatility and losses. There are always opportunities in the Bitcoin contract market; if you miss them, just accept it. Cut losses if necessary, because no one can be 100% accurate. Excessive trading due to market volatility and frequent mistakes can easily lead to losses.

7. Make Decisive Buy and Sell Decisions
A successful trader can buy and sell decisively. Even if they make a mistake, setting a stop-loss prevents big losses. Use risk-avoidance strategies rationally to minimize losses and maximize gains. Have you heard this saying? When you hesitate to buy, that’s often the best entry point. When you hesitate to sell, that’s often the best exit point.

8. Investing with Idle Funds in Contracts Is Risky
Using idle funds for contract trading carries high risk of liquidation. Once liquidated, assets become zero, and your mindset can turn irrational. You may try to recover losses hastily, leading to reckless operations, more mistakes, and further losses. Therefore, it’s not recommended to borrow money or take loans to trade contracts.

9. Don’t Be Greedy
Trading contracts requires strong psychological resilience. Contracts amplify your principal and profits, but also your greed. The greedier you are, the less rational your decisions become. When the market moves in your favor, you want more profits. But if the market reverses, profits that should have been yours are lost. According to numerous studies, over 96% of losses are caused by greed.

Investing involves risks. Enter the market cautiously!