Brothers, today let's talk about a heart-wrenching yet realistic topic: can contracts in the crypto world really make money?
The answer is straightforward: yes, but 90% of people can't earn.
This is not to dampen spirits. When I first entered the space ten years ago, I was full of thoughts about achieving 'instant success' through leverage. What happened? At the beginning, I couldn't even keep my principal safe and tasted the bitterness of liquidation repeatedly. It was only later that I understood contracts are like a sharp knife—used correctly, they can cut meat; used incorrectly, they can only cut yourself.
I. Why do most people lose money trading contracts?
It's not that the market is too harsh; many people have started off in the wrong pit:
1. Trading based on emotions, with zero understanding.
Not understanding trends, unable to distinguish between support and resistance, and lacking any trading logic. Chasing prices when they rise, thinking 'it can still go up'; panicking when they fall, either cutting losses randomly or holding on for a rebound. Fearing profit loss when prices rise, fantasizing 'it will come back' when prices drop, relying entirely on luck, and liquidation is only a matter of time.
2. The direction is correct, but the position is ruined.
Clearly seeing the market direction, but being forced out by a small fluctuation due to heavy betting and adding positions against the trend. It's like driving in the right direction but pressing the accelerator to the floor, crashing into a rock and flipping over—it's not about making the wrong judgment; it's about being too reckless in operation.
3. No risk control, yet love to mess around.
When the market is good, making a profit leads one to feel like a 'master' and can't help but open positions every day; when the market turns, not only do they lose all their gains, but they also have to dip into their principal. Greed makes people chase high prices, fear makes people cut losses, and frequent trading becomes 'paying transaction fees to the market,' ultimately leading to more losses.
II. If you want to make money from contracts, how should you play?
It's not about gambling on luck, but about surviving by rules:
1. Make money with the trend, risk death against the trend.
Contracts are never meant for 'bottom fishing or top picking.' When the trend is clear, follow the main forces; when the trend is unclear, it's better to stay out and wait than to force a trade. Remember: the market never lacks opportunities; what it lacks is the patience to wait for opportunities.
2. Light positions for trial and heavy positions for targeting.
Every trade must have logic: first, test with a light position, confirm the direction is correct and the trend is stable, then gradually increase the position. It's like hunting; first aim, then pull the trigger, not shooting randomly at the sight of prey. Capturing a few major trends in a year is ten times better than messing around every day.
3. Stop-loss is a lifeline, control the drawdown tightly.
Cut losses decisively at 5%, don't wait until it drops to 50% to regret. True experts are not judged by how much they earn, but by how much they can preserve. As long as the principal is there, there is a chance to recover; without the principal, one can only watch others play from the sidelines.
4. Build your own 'trading system.'
Stop relying on 'feelings' to place trades. You need to be clear: what signals should you go long on? In what situations should you go short? Where should you set take profit and stop loss? Write these down, form fixed rules, and strictly enforce them—making money through a system is 100 times more reliable than relying on emotions.
III. How do I currently trade contracts?
To be honest, I trade contracts less now. When the capital amount increases, I focus more on 'stability.' But when a big trend comes, I will also trade, only capturing opportunities that are 'large-scale, high certainty, and strong logic': taking light positions to follow the trend, making a profit and then leaving, never getting attached to the battle.
The secret is just two words: restraint.
It's not that opportunities are few; it's that 'good opportunities' are scarce. If you can seize 10 reliable trends in a year, that's enough to turn things around.
IV. Finally, a heartfelt word.
Contracts can make you rich overnight, but they can also bring you to zero in a second.
True experts do not win once by luck; they win consistently through knowledge, systems, and execution ability.
Don't let short-term windfalls cloud your judgment; this market plays with probabilities and is about the overall outlook. Want to make big money from contracts? It's not hard—but the first step is to learn how to survive.
If you have experienced losses and liquidations back and forth, feel free to share your experiences in the comments, and let’s review together and fill in the pits.