1. Core mindset: survival as the primary goal
1. Respect the market and abandon the fantasy of getting rich quickly
The essence of the contract market is zero-sum gaming; short-term profits may come from luck, but long-term survival relies on rationality. Never think of yourself as 'chosen by destiny'; the market is always more complex than your understanding. The mentality of getting rich quickly can lead to over-leveraging and frequent trading, ultimately being consumed by volatility.
2. Accepting losses is an inevitable cost
Losses are part of trading; no one can achieve a 100% win rate. The key is to control losses within acceptable limits using stop-loss rules to avoid catastrophic impacts from single errors. Treat losses as tuition, not shame.
2. Emotional management: combating human weaknesses
1. The balance between fear and greed
Fear: hesitant to enter during a downturn, afraid of missing out (FOMO) during a rebound, easily leads to chasing highs and selling lows.
Greed: unwilling to take profits when in profit, always wanting to 'catch all the fish', ultimately turning profits into losses.
Countermeasure: use rules to replace emotions, prepare trading plans in advance (when to enter, stop-loss, take profit), and execute coldly like a machine.
2. Reject 'revenge trading'
Rushing to recover losses after a setback is the trigger for most people’s liquidation. At this point, it is necessary to forcibly pause trading and review mistakes rather than 'bet back' with larger positions.
3. Avoid overconfidence
Continuous profits can lead to overestimating one's abilities and ignoring risks. Remember: the market can reverse at any time, and past victories do not guarantee future success.
3. Strategy discipline: using systems to combat uncertainty
1. Position management takes precedence over everything
Do not exceed 2%-5% of total capital in a single trade (adjust according to risk tolerance).
Never add to a losing position; decisively cut losses when unrealized losses exceed the plan.
Leverage is a double-edged sword; beginners are advised to start with low leverage (e.g., 3-5 times).
2. Only trade in markets you understand
Market opportunities are infinite, but the possibilities that belong to you may only be 1-2 patterns (e.g., trend breakout, pullback reversal). Focus on patterns you are good at, and ignore the 'noise' in complex fluctuations.
3. Record and review
- Daily record of trading logs: analyze entry and exit logic, emotional fluctuations, execution deviations.
- Regularly statistics win rates and profit-loss ratios to optimize strategy loopholes.
4. Cognitive enhancement: traders who continuously evolve
1. Understand the essence of the market
The contract market is a battlefield of capital gaming and emotional resonance. While learning technical analysis, also study market psychology (such as long-short positions, liquidation points) to find opportunities from group behavior.
2. Maintain openness and humility
The market is always changing; past strategies may become ineffective. Continuously learn new tools (e.g., options hedging), new logic (e.g., the impact of macroeconomics on assets), to avoid stagnation.
3. Distinguish between 'luck' and 'skill'
A single success may be luck, but long-term stable profit is strength. Beware of survivor bias; don’t blindly imitate others' 'myths'.
5. Ultimate realization: trading is a process of cultivating the mind
Contracts are not gambling but a probability game: use rules to capture high-probability opportunities, accept small losses, and embrace large gains.
The biggest enemy is yourself: 90% of failures stem from a collapse in mindset, not from a lack of skills.$BTC $ETH 
