The underlying logic of profit: Master the three tricks of 'coin-flipping judgment + automated strategy + lifeline risk control'.
First trick: Treat contracts like flipping a coin—first see both sides clearly before placing a bet.
1. Underlying logic
Going long is like betting on the heads of a coin, which means expecting asset prices to rise; as long as the direction is correct, profits can be made; going short is similar to betting on the tails of a coin, expecting asset prices to fall, and profits can also be made if the direction is accurate.
Leverage is not a magical money-making tool; it is essentially an amplifier: 10x leverage is like exchanging a 1 yuan coin for a 10 yuan die; when the direction is guessed correctly, profits will amplify 10 times, and losses will also amplify 10 times if guessed wrongly.
2. Practical details
Before placing an order, be sure to take 3 seconds to ask yourself three questions: ① Is the current asset trend upward or downward? ② Are there any significant news that might interfere with price movement? ③ Where is the stop-loss point set?
Use the 5-minute K-line chart to find 'secondary confirmation signals'; for example, after the price breaks through a key point, it returns to confirm, then decide whether to place a bet on the trade.
Second trick: Use strategies instead of impulsive decisions—let the system work for you.
1. Grid trading
Scenario: Suitable for volatile markets, for example, BTC fluctuating back and forth within the 60k–65k range for 3 days.
Settings: Set each grid at every 500U, following the principle of buying low and selling high, with the system operating automatically 24 hours a day.
Profit estimation: When the volatility range is 5% and using 3x leverage, the net profit rate per grid can reach 15%, with daily returns of about 3%–5%.
2. Funding fee arbitrage
Principle: When the funding fee for contracts is higher than the interest on spot holdings, lock in the interest rate difference by going long on the spot and shorting the perpetual contract.
Case: A certain token's contract funding fee annualized at 18%, with spot annualized returns of 2%, results in a 16% interest rate difference; if 100,000 U is invested, a stable return of 16,000 U can be obtained in a year.
3. Hedging trading
Scenario: The night before a major event occurs, the direction of asset price fluctuation is unknown.
Operation: Simultaneously open equivalent long and short positions, and after the price fluctuates, close the losing side and keep the profitable side, achieving the effect of 'making a profit regardless of rises or falls.'
Third trick: Treat risk control as a lifeline—first learn not to lose money, then talk about making money.
1. Position management
Adopt the pyramid averaging method: First position 1%, when the profit reaches 2%, increase the position by 0.5%, and the total position should not exceed 3%.
Adopt the reverse pyramid reduction method: Reduce position by 1% when losing 1%, reduce position by 2% when losing 2%, to prevent liquidation.
2. Stop-loss discipline
Fixed stop-loss: Set a stop-loss point of 2%–3% immediately when opening a position; automatically close the position when the price hits the stop-loss point.
Trailing stop-loss: When the profit reaches 5%, move the stop-loss point up to the cost price to lock in the profits already gained.
3. Emotional management
If there are three consecutive losing trades, take a mandatory break of 24 hours to avoid making 'revenge trades' due to emotional loss of control.
Establish an 'emotional diary': Record the reasons for each position opening, profit and loss situation, and your feelings at the time to correct trading impulses through data.
4. Funds and living
Ensure separation of living expenses: Reserve at least 12 months of daily expenditure funds to ensure that even in the event of a liquidation, basic living will not be affected.
Indicator assistance: Technical indicators such as MACD and KDJ are only for reference; the core of trading remains trend, volume-price relationships, and relevant news.
Conclusion
Contract trading is not a casino, but a marathon about cognition and discipline.
It is recommended to first use 1% of funds to practice 100 trades on a simulated account before entering a real account; incorporate the concept of 'not losing money' into trading habits before pursuing the reflection of 'making money' in account balances.
Remember: Making money in the crypto world does not rely on mysticism, but on mastering simple techniques, using rules as your foundation, so you can avoid pitfalls and maximize gains in short-term trading. Follow me for more simple and practical operational tips to make your skills your foundation for earning money.
