Recently, I've seen many people discussing the frequent accidents in the cryptocurrency space. Regarding contracts, I’d like to share my thoughts: the crypto market is essentially a form of investment, and naturally, there will be profits and losses. The risk of contracts is high, but so are the returns; how do we manage that?

1. Risk control plan: it’s advisable to trade with a light position; the risk is lower, and generally, you can earn a little over time.

Maintain a constant position size for a month. Change it once a month to develop the habit, so trading won't be nerve-wracking and you can maintain a calm mindset, making it easier to make money. This is what true investing is; otherwise, it's just speculation.

2. No matter what position you take, you must have a stop loss! Even if you’ve already lost a few times, you must have a stop loss!!!

3. For example, with a capital of 3000 U, use 8% of the funds for each trade, choose 100x leverage, and trade 20 contracts each time.

Maintain the same number of open contracts for two weeks or longer. After two weeks, if the capital reaches 5000 U, we adjust the number of contracts to 30 and continue trading for another two weeks. By doing this, we ensure that our margin requirement remains the same each time; as long as our win rate is greater than 50%, and we keep stop losses small and take profits large, we will definitely profit.

If you take profits on a 100-contract position but have a stop loss on a 300-contract position, you will end up losing overall.

I always use the same number of contracts, with the same take profits and stop losses; as long as my win rate exceeds 50%, I will make a profit overall.

As long as the stop loss is small and take profit is large, trading the same position size for a period will definitely yield profits.

4. Regarding how much capital to put into each trade, I personally recommend building positions in batches, with the final position size accounting for 3%-5% of the total.

At most, do not exceed 10%!!!

Remember, do not hold onto losing positions!!!

Holding onto a losing position will lead to certain death!!!

Keep this in mind!!!

Generally, taking profits at a 50%-80% win rate or doubling is enough to close half of the position, keep the rest, and then set the stop loss to the entry price!

After making a profit, reduce the position size, and then set the stop loss to the entry price to prevent profit retracement. Don't be greedy! Don't be greedy! This is the best tool for trading!

I hope everyone avoids frequent trading; wait for stable and tight stop losses, even if you do have to stop out, the loss won't be too much!

When profits double, it's time to cash out!

When trading contracts, whether long or short, you must set a stop loss. Set the stop loss based on your personal risk tolerance, and even if the stop loss is wrong, it must be adhered to strictly!

Do not set the stop loss in whole numbers; add three to five points to prevent being stopped out.

Finally, here's a piece of advice for everyone. Become a trader or an investor, develop good habits, maintain a good mindset, and slowly accumulate wealth in this trading market, rather than becoming a gambler dreaming of getting rich overnight. When you pin all your hopes on one thing, you have already lost.#币安HODLer空投ERA $BTC