Three Iron Rules of Contract Trading: Why 99% of People Get Liquidated, While Only 1% Survive?
The contract market is the most dangerous and addictive place in the cryptocurrency world.
Beginners often think, "Just add some leverage, bet on the right direction, and doubling is easy." But the reality is that most people don't survive past three months.
Why? Because they have never taken risk management seriously. The traders who can survive long-term have three big words etched in their minds:
1: Light Position
Light position is not cowardice; it is the first step to survival. With high leverage and large fluctuations in contracts, if you go in heavy, even if you're right about the direction, a single retracement can lead you to liquidation. The essence of a light position is to give yourself breathing room, allowing your account to withstand volatility.
2: Follow the Trend
The market is always smarter than you. Those who go against the trend never end up well. Trend trading means going with market sentiment and not fighting against the trend.
Want to short? Wait for it to break critical support before entering short. Want to long? Wait for a valid breakthrough of resistance before entering long. Avoid making random trades in a sideways market and don't force a bottom at reversal points.
3: Stop Loss
If you're wrong, cut it off. Don't cling to it, don't hesitate. Those who get liquidated aren't due to a single large loss, but because of countless "unwilling small losses," which eventually lead to larger and larger losses, getting deeper and deeper into trouble. A stop loss is not a failure; it gives you the chance to wait for the next right market condition.
Core: Contracts are a high-risk game. The real underlying logic can be summed up in one sentence: Survive to make money. Don't focus on "how much can this position multiply," first learn "if this position is wrong, how can I get out?"
As for how I personally combine position sizing, swing rhythm, and data analysis for long-term stable profits? Keep up with my rhythm!