When I first touched futures, it felt like carrying a lighter into a powder magazine. In 2018, I dashed into the crypto world with my year-end bonus, coding in the office during the day and gambling on exchanges at night. Guess what? Back then, ETH was only $200, but I insisted on playing 'timing the top and bottom' with 10x leverage, and ended up getting taught a lesson by the market. The worst moment was at 3 AM, watching my account drop from 30,000 USDT to 15,000; greed prevented me from closing my position, and when I opened my eyes in the morning, I was left with nothing but my underwear. (Thinking back to that piercing candle, my back still chills.) Later, I realized that the futures market is a ring that punishes those who don’t learn their lesson.

The pits I've fallen into over the years could now fill a path to wealth with gold bars: Holding onto a position is like holding a time bomb: On the night of the crash on March 12, 2020, I refused to believe Ethereum could drop from 240 to 87, stubbornly holding a long position with over 20x leverage, resulting in the evaporation of half a year's savings in just four hours. Now? When the price touches the stop-loss line, it's like hearing an alarm; I dare to hit the close button with my eyes closed.

Leverage hides a sickle: I used to believe that 100x leverage could 'turn a bike into a motorcycle,' but now I see that anything over 10x leverage is just gambling. Last month, a friend used 50x leverage to bet on LTC breaking out; the market clearly moved in the right direction but got washed out by a 5% fluctuation—high leverage simply can't withstand normal volatility. Withdrawing is more important than making profits: I now transfer to a cold wallet every time I earn enough 30,000 USDT; my trading account only keeps money that I can afford to lose. On the night of the LUNA crash last May, the trading group next door was in chaos, but I had just withdrawn 200,000 USDT to buy gold bars during the day, dodging a catastrophe and able to watch the storm with a smile.

To turn from a liquidation specialist into a stable profit-maker, it all relies on three treasures: Treat trading like a job: I now diligently execute three trades daily—following the US stock market opening in the morning, monitoring Asian market movements in the afternoon, and capturing Euro and American handovers in the evening. Other times? I turn off the phone and play Lego with my daughter.

  1. Developing market instincts is like building muscle memory: I’ve been studying the Ethereum four-hour chart for three years, and now I can tell at a glance where stop-loss orders are buried. Last Thursday, ETH was consolidating at 1850, and I smelled a similar scent to the FTX explosion last year, so I decisively opened a short position, and the next day, a waterfall occurred.

Emotional management is a protective moat: In the past, I would revenge-trade after losses, but now when my account is in the green, I run five kilometers downstairs. Once, after making three consecutive wrong trades, I flew to Sanya for three days of surfing; when I returned, my head was clear, and I earned back half a month’s losses in three days.

The most paradoxical thing in this industry is that the more you want to get rich quickly, the more the market will charge you an IQ tax. I now recite three times daily:

Unrealized gains aren't money; putting them in your wallet is.

Don’t fall in love with trends; be decisive when it’s time to cut losses.

Living longer is ten thousand times more important than making money fast.

Finally, let me share a heartfelt piece of advice: I’ve seen liquidation messages at four in the morning and tasted the sweetness of withdrawing profits at the peak of a bull market to buy a house. In this hellish arena, the ones who survive aren't the smartest, but the ones who understand respect. Remember, when the numbers on the screen make your heart race—it's time to close the app.

I am Xiao O, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most basic requirement is to help everyone make money. I will help you solve confusion and trapped positions, speaking with strength. When you’re lost and don’t know what to do, follow Xiao O, and I will point the way.