If you are currently in a losing position with your contracts, then you need to read this article carefully and make sure to follow these points.

Make sure you can achieve profits.

A three-year-old novice's insights to share; the following points are all very important.

1. Learn to take profits and cut losses.

I've mentioned this many times: the market changes rapidly; you must learn to adapt. This isn't as difficult as it sounds. Taking profits controls your greed. A cryptocurrency won't rise indefinitely, nor will it fall continuously; everything has cycles. Thus, taking profits becomes particularly important. Don't say you exited too early and missed later profits. Remember, you can't earn all the money in the crypto world, but you can lose all the money in your account.

Cutting losses is about giving up sunk costs, which is also very difficult. Do you think that if you just hold on a bit longer, it will reverse? Don't think that way. If you're wrong, you're wrong; admit it. If you're taking hits, stand tall. Losing an arm to survive hurts, but it can save your life.

Let me reiterate: when opening a position, ensure there are enough error margins. The direction may be right, but if your volatility tolerance is too low, you can easily get thrown off.

2. Avoid frequent trading.

A big taboo: Are you always thinking about making profits on both sides? Wake up; not many people can do that. Be satisfied if you can profit on one side. Another point is the transaction fees; low leverage is manageable, but high leverage can be painful. You lose 1-2 points in profit as soon as you open a position, so you must ensure this trade is profitable; otherwise, opening it is meaningless.

3. Learn to hold cash.

When you don't understand the market, don't open a position. At this point, you might say that missing out on opportunities is painful. So let me ask you: is it more painful to miss out or to incur losses? Opening a position without understanding the market is no different from gambling.

Trading is about having a probability advantage. No one can accurately predict whether the market will rise or fall. The market changes too quickly; you can only say that it is highly likely to rise or fall.

Just a side note: the top two exchanges now have social trading features. If you're unsure about opening a position or often misjudge the direction, you might want to check out the social trading area. Choosing the right trader is also important.

4. Take gradual steps.

Don't think you can get rich quickly; such things take time and gradual effort.

The crypto world won't make you rich overnight. For example, if you start with 100 and go long with 10x leverage, your position is 1000. If it rises by one point, you earn 10; if it rises by two points, you get 20. That's a breakfast's worth, right? Nowadays, a factory job pays 15 per hour, and if you make three to four trades a day with a win rate of 60-70%, it's more comfortable than working in a factory.

5. Do not go all in with high leverage.

Don't go all in with high leverage; a little accident can wipe you out. It was supposed to go up as expected, but any sudden major news can cause an immediate reversal, and if you haven't set a stop loss, you're doomed.

Stay rational and don't get too emotional, especially after a liquidation. (This is the consequence of not setting a stop loss; liquidation leads to a series of chain reactions, making stop losses particularly important.)

At this time, you really want to break even. You must maintain rationality. If you fear you can't control yourself, you can enable a cooling-off period for contracts.

Don't think that enabling the contract's cooling-off period means you've missed this wave of the market. The crypto world is not short of opportunities; it always has them. They will be around for at least the next 10 to 20 years.

6. Always strive for unity of knowledge and action.

This point is indeed quite difficult, even I sometimes can't fully achieve it. Human weaknesses are hard to grasp.

If I think of other points later, I will update them.

I used to be a novice too; I didn't understand these basic issues. I opened trades randomly and without a plan. After some time in the industry, I realized that the crypto world can truly change your fate.

If you've come across this article, I hope it can help you a little bit.