Why do many people lose money in contracts? How can contracts be played to profit?

Different strategies are needed for different market conditions.

1. Range Market:

1. Only trade BTC/ETH for high selling and low buying; do not trade any altcoins!

2. High Short:

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

For example, if the MA60 moving average above the 4H level continuously suppresses the price, then use this moving average as the timing for entering short positions.

2.2. Stop Loss: Place it above the previous high after a spike up and then a pullback. For example, if the resistance is at 2440 and the spike reaches 2450, then the stop loss should be set above 2450.

3. Low Long:

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

3.2. Stop Loss: Place it below the previous low after a spike down and then a rise. For instance, if the support is at 2320 and the spike reaches 2310, then the stop loss should be set below 2310, around 2300.

4. Drawdown Control:

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

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

4.3. The position size for each entry should remain consistent.

5. Entry Method:

5.1. Try to enter positions in batches; do not deploy all capital at once!

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

2. Major Uptrend Market: Use intraday trading strategies.

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

2. Control the profit-loss ratio to around 3:1.

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

4. Daily review.

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

4. Take Profit Options:

1. Guaranteed Profit Stop Loss: When the conditions are met that no stop loss occurs on the day of opening a position and the K-line pattern at the same level has not been damaged, you may not need to carry a guaranteed profit stop loss.

If either condition is not met, then you must carry a guaranteed profit stop loss. ETH: Carry a guaranteed profit after a floating profit of 20 points; BTC: Carry a guaranteed profit after a floating profit of 350 points.

2. Trailing Stop Loss: ETH: After a floating profit of 35 points, use a 3/5 minute level for trailing stop loss; BTC: After a floating profit of 500 points, use a 3/5 minute level for trailing stop loss.