There are always some fans asking me: How exactly do you operate contracts? Today, I will share with everyone a basic operational framework that I commonly use.

I generally start by using 20% of the total funds to establish a position. This is like sending a small team to probe the enemy's situation before a battle.

If this step goes wrong and the price drops after buying, resulting in a 10% loss, then we shouldn't hesitate and should quickly cut losses. This way, the loss is only 2% of the total position, just like being bitten by a mosquito—it's painful but not fatal, effectively nipping the risk in the bud.

If the purchase is correct and the price rises, when the profit reaches 10%, I will add another 20% to my position. If the price continues to rise and increases by another 10%, I will add another 20%. At this point, if the momentum is still strong, I will make a large move and add 40% to my position.

After adding to the position, as long as the price does not drop by 10%, I will hold steadily and let the profits snowball. However, if the price drops by 10%, it indicates that the situation is not good, and I will immediately close all positions to protect the profits I have made, never being greedy.

The central idea of this framework is to minimize risk. However, this is just a general framework; when implementing it, one will definitely encounter various uncertainties, as the market is ever-changing and unpredictable.

When I make trades, I often follow this framework. So far, the results have been decent, but don't expect it to make money 100% of the time; it's mainly to help us reduce risk and increase the probability of making a profit.

Contracts require method. If you just recklessly dive in, you can only be treated as fodder by the market.