What is the easiest way to get wrecked in a contract? It’s that impulsive trading style of chasing gains and cutting losses.

When the price goes up, rushing to short; when it drops, panicking to go long—such unplanned operations, losses are no surprise, sooner or later you’ll have to settle the account.

Let’s clarify: the rules of trading contracts are never as simple as betting on rise or fall. It’s about discipline, strategy, and executing every step with a plan. After years of struggling and learning in this industry, I’ve stepped on enough pitfalls and paid enough tuition to fill half the country. Today, I’ll summarize those hard-earned lessons into 8 trading principles. Following them can help you avoid most deadly pitfalls.

**Always keep a small position as the survival baseline.** Limit each trade to within 10%. Greedy over-leverage only cuts off your escape route. This isn’t conservatism; it’s respect for market volatility.

**Set your stop-loss firmly and don’t loosen it.** Once set, abandon luck. Exiting with a small loss is far better than getting wiped out. This rule is often overlooked but can be deadly.

**Follow the trend.** Don’t bet on rebounds or try to catch pullbacks. Stick to clear trends—this is the safest approach.

**Calculate your risk-reward ratio carefully.** Keep the risk-to-reward ratio within 1:3. Avoid losing games that cost you money.

**Frequent trading is your enemy.** The more you trade, the more mistakes you make. Patience and waiting for truly high-quality opportunities are more efficient than messing around all day.

**Better to miss a move than to make a wrong one blindly.** When the trend ends, exit decisively. Don’t pick up the mess of chasing gains and cutting losses.

**Maintain a stable mindset to support profits.** Stop trading when daily losses exceed expectations. Avoid emotional trading. When your mental state isn’t good, don’t touch contracts. Technical analysis is just an aid; your mindset is what truly locks in profits.

**Contracts are not gambling; they are a contest of discipline and strategy.** Make these 8 rules your trading guidelines. Less impulsiveness, more planning—only then can you stand firm amid the volatility of the crypto world.