Today, I will deeply analyze the underlying logic of cryptocurrency contracts, helping you transform from a victim being harvested into a precise and powerful 'scythe'.
Just stepping into contract trading and feeling lost in the ups and downs of the red and green lines? Remember these three key points: first ensure capital safety, then seek profits.
First point: Clearly define your true opponent.
Contract trading is similar to a coin toss game, but the two sides of the coin are not simply up and down, but 'volatility + time'.
- Accurate Direction Judgment: When going long, the coin price rises; when going short, the coin price falls. Profit equals the price difference multiplied by the leverage.
- Correctly Estimate Magnitude: Only with sufficient price volatility can you offset transaction fees and slippage costs.
- Precise Rhythm Control: Find the right timing to enter the market amidst the main force's 'shake, pull, and smash' rhythm.
10x leverage is like turning a coin into a dice; a high number yields amazing profits, while a low number can lead to liquidation and losing everything. Therefore, first be clear about what you are betting on before discussing how to win.
Second point: Shift from single bets to systematic strategies.
Winning with the 'scythe' relies not on one-time all-in bets, but on a combination of strategies.
- Grid Strategy: In a volatile market, it acts like an ATM. Set a price range in advance to achieve automatic low buying and high selling, allowing daily earnings.
- Funding Fee Arbitrage: When the funding fee rate is positive, adopt the operation of 'short contracts + long spot'; when the rate is negative, reverse the operation, thus earning interest with zero risk.
- Hedge Swing: Before major events occur, simultaneously go long and short to profit from volatility; once the market direction is clear, decisively cut off the opposing position and let the profitable position continue to expand earnings.
Integrate these three strategy modules into a personal 'strategy library', so that no matter how the market changes, you will always have a response plan and maintain proactivity.
Third point: Strictly lock in risks.
Leverage is both a tool to amplify profits and a 'meat grinder' that can bring enormous risks.
- Position Control: The risk taken on a single trade should not exceed 1% of the principal. Regardless of how confident you are in the market, do not arbitrarily increase your position.
- Stop Loss Setting: Immediately place a stop loss order when opening a position, which will be automatically executed by the system when the price is triggered, avoiding emotional interference in trading decisions.
- Establish a Cool-off Period: If you have two consecutive stop-loss trades, force yourself to shut down for 30 minutes, review and summarize carefully, and then decide on the next operation.
- Build a Life Firewall: Reserve at least 12 months of living expenses to prevent liquidation from affecting basic living.
- Correctly View Indicators: MACD golden cross and dead cross are only part of market changes; the volume-price structure and market sentiment are the key factors.
Contract trading is not a traditional casino, but a probabilistic investment based on cognition and discipline. Profits depend on accuracy, odds, and position size; any issue in any part can lead to zero returns. Therefore, first learn how to reduce losses, then consider how to increase profits; practice operating with 1% position size in a simulation before entering real trading.
Want to receive my real-time strategy pool and position templates daily? Follow @Zhang Heng, and together we can turn the 'coin' into a harvesting 'scythe'.