You must have heard the old investors say, "Don't touch contracts," because they all got wiped out!
For example:
Old Zhang played spot trading with 15,000 last year, and now only has 8,000 left in his account. Neighbor Xiao Liu used 10,000 to trade contracts and rolled over, catching Bitcoin's 20% fluctuations three times, and now has 90,000 lying in his account—the difference is that Xiao Liu treated every profit as new principal to continue compounding.
The following hard-learned lessons must be etched in your mind:
1. Treat contracts like gambling, operating 20 times a day (the transaction fees are enough to buy an iPhone)
2. Wanting more after making money, wanting to recover losses after losing (in the end, they basically all fall through)
3. Opening positions like gambling, maxing out leverage and risking everything (the speed of liquidation is faster than food delivery)
Do you know why I’ve survived until now? The life-saving mantra earned from three liquidations:
Only trade in 3 types of markets: sharp decline rebounds/breakouts from sideways movements/extreme panic
Never more than 30% of your capital in one trade (even if it blows up, you still have bullets left)
Don’t watch the market for more than 3 hours a day (the longer you stare, the faster you die)
How to operate specifically? For example, if Bitcoin drops to 50,000:
First, take 10,000 as principal and open a 3x leverage position, when it rises to 53,000, close half, pocket the principal first, let the remaining profit continue to roll, set a stop-loss line at 52,000, and clear the position directly when hitting the 60,000 resistance.
If capital loss exceeds 30%—stop immediately for half a month
If profit drawdown exceeds 50%—lock in profits immediately
Leverage is not the killer, position size is
Fatal misconception: "100x leverage = high risk"
Truth: 100x leverage + 1% position size = actual risk = 1x leverage at full position
Case study: A professional trader using 50x leverage, but each position ≤ 0.5%, no liquidations for 3 consecutive years, with an annual return of over 300%
Stop-loss is not giving up, but rather a ‘resurrection item’
In the 2024 May 19 crash, the common point of the 83% of liquidated accounts: losses exceeding 10% still holding on #币圈
Single trade loss ≤ 1% of principal (institutional standard), equivalent to equipping the account with a "blast shield" #币圈暴富
Profit without increasing position = working for nothing
Wrong operation: running away after making money, resulting in missing a 10x market
Correct strategy: #CPI数据来袭
Initial position 5% (trial and error) #贸易战缓和
For every 10% profit, use 20% of the profit to increase the position (compound rolling)
Case study: In the 2024 SOL market, rolling 50,000 capital to 500,000 in just 2 months #币安Alpha上新
If you are also a tech enthusiast, delving into technical operations in the cryptocurrency world, consider following the account [Crypto General Instructor], where you will gain the latest cryptocurrency information and trading skills.
