Why do many people lose money in contracts, and how should contracts be played to be profitable?

Different market conditions require different strategies.

1. Consolidation Market

1. Only trade high and low for BTC/ETH, do not trade any altcoins.

2. Shorting

Entry Point: Mainly determine the entry point for short positions based on important resistance moving averages above the 4H level.

Stop Loss: Set it to the previous high after a spike upwards followed by a drop.

3. Longing

Entry Point: Generally use support below the same level or a higher level as the entry point for long positions.

Stop Loss: Set it to the previous low after a spike downwards followed by a rise.

4. Drawdown Control

Stop Loss Principal: 20% of total capital; if reached, no further trades for the day.

4.2. Daily operations generally focus on two trades, with a single stop loss controlled at 10%.

The position size for each trade should remain consistent.

5. Entry Method

Aim to enter in batches, do not fully load at once.

Try to follow the trend when entering trades; if the main trend is bearish, try to short, and vice versa.

2. Main Uptrend Market: Use intraday trading strategies.

1. When the market trend is good, chase hot coins (top 3 in rise percentage or highly popular coins).

2. Control the risk-reward ratio, keeping it around 3:1.

3. Daily stop loss drawdown should be 10%-15% of capital; if reached, no further trades for the day.

4. Daily review.

3. Crash Market: Hold cash and wait for opportunities to enter in batches. If there are no opportunities, just wait in cash. In this market condition, not losing money is equivalent to making money.

4. Take Profit Options

1. Guaranteed Stop Loss: When the day's trades have not hit stop loss and the same level's K-line pattern has not been disrupted, there is no need for a guaranteed stop loss.

If either condition is not met, then a guaranteed stop loss should be set. ETH: set guaranteed stop loss after 20 points of profit; BTC: set guaranteed stop loss after 350 points of profit.

2. Moving Stop Loss: ETH: move stop loss after 35 points of profit, using 3/5 minute levels to adjust; BTC: move stop loss after 500 points of profit, using 3/5 minute levels to adjust.

5. Precautions

1. Never think about gambling for a sudden fortune; stable compounding is the goal; greed equals liquidation.

2. Only trade within your own market! Learn to stay in cash, do not force trades.

3. Try not to place night trades; if you must trade at night, try to hedge.

4. Try not to place trades on weekends; if you do, allow for a maximum of one stop loss.

5. After being stopped out, control your mindset; do not get emotional.