The Core Logic of Not Being Liquidated in Contracts: From 'Gambling on Luck' to 'Stable Profitability'

1. Do not bet on direction, only do certain things

Key Recognition: Price fluctuations are probabilities, contracts earn certainty, not excitement.

Pitfall: Leverage is an amplifier; under 10x leverage, a 1% fluctuation leads to zero, relying on feelings = giving away money.

Required Actions:

1. First determine the trend (up/down/sideways), if unclear, observe;

2. Before entering the market, ask yourself: Is there breaking news? Where is the stop-loss if I'm wrong?

3. Optimal Timing: Enter after a breakout with a pullback confirmation; better late than early.

2. Use strategies instead of 'guessing'

① Grid Quantification (for sideways markets)

Applicable Scenario: Price fluctuates within a narrow range (e.g., BTC 60K-65K).

Operation: Set multiple limit orders, automatically execute trades at fixed price movements, achieving 'buy low, sell high'.

Suggestion: Small positions + 3x leverage, single grid profit 10%-15%, daily return 2%-5%.

② Funding Fee Arbitrage (zero risk guaranteed profit)

Method: Long spot + short perpetual contracts simultaneously to lock in interest rate differential.

Example: Funding fee 18% + spot annualized 2%, interest rate differential 16%, earn 16,000 USD annually on 100,000 USD.

③ Two-Way Hedging (defense before major events)

Applicable Scenario: When direction is unclear, such as during Federal Reserve meetings, CPI releases, etc.

Operation: Open equal amounts of long and short positions; after direction becomes clear, stop-loss one side, leave the other side to profit.

3. Risk control is the premise of survival

Position Rules

Initial position ≤ 1%, maximum not exceeding 3%, increase position after making profits.

Continuous losses: Reduce position or go to cash; never bet on recovering losses out of frustration.

Stop-Loss Principles

Set a stop-loss when opening a position, capped at 2%-3%, do not hold onto luck.

If profit exceeds 5%, immediately raise stop-loss to entry price to ensure no loss.

Emotional Management

After three consecutive losing trades, take a mandatory one-day break; trading with a bad mood will definitely result in losses.

Write a trading journal: Record reasons for opening positions, emotions, stop-losses, using data to reduce subjective judgment.

Bottom Line: Financial Independence

Set aside one year of living expenses; never use 'living money' for trading, this is a lifeline.

Finally: Contracts earn not from volatility, but from systems, discipline, and stability. Beginners should first simulate 100 trades, become proficient in risk control before using real money. Learn not to lose first, then you are qualified to talk about earning.