Contract trading can be a double-edged sword for beginners; playing well can amplify profits, but careless operations can lead to total loss. To avoid traps and make money through discipline, these three tips must be remembered.
First Tip: Treat contracts like flipping a coin - understand the rules before placing a bet
Don't jump in thinking contracts are a 'quick wealth tool'; first understand its underlying logic:
The essence is guessing the direction: going long = betting on price increase, going short = betting on price decrease; profits are made only if the direction is correct, and losses occur if it’s wrong; it’s as simple as guessing heads or tails.
Leverage is an amplifier: 10x leverage doesn’t give you 10x more money out of thin air, it amplifies a 1 yuan gain or loss to 10 yuan - getting it right earns more, getting it wrong loses more; never treat leverage as a 'sure win magic'.
Three things to do before practical operations (ask yourself within 3 seconds):
① Is the current trend upward or downward? (Don’t rely on feelings; look at the K-line trend)
② Are there any sudden news that might disrupt the trend? (Policy changes or market volatility count)
③ Where is the stop-loss point set? (If you have no answer, resolutely do not place an order)
It is advisable to use a 5-minute chart to find 'secondary confirmation' signals; for example, after the price breaks through key levels and stabilizes at a support level, it’s safer to enter, avoiding chasing highs and lows and getting trapped.
Second Tip: Use strategies instead of guesswork - let the system help you make money
The most common mistake beginners make is 'placing orders based on feelings'; it’s better to use existing strategies to constrain yourself:
Grid Trading: The 'ATM' of fluctuating markets
Suitable Scenario: For example, when BTC fluctuates between 60k–65k without a clear upward or downward trend.
Operating Method: Set a grid for every 500U; automatically buy when the price drops and sell when it rises, running in a 24-hour cycle.
Profit Reference: In a fluctuating range, 5% + 3x leverage can yield a net profit margin of 15% per grid; earning an average of 3%-5% daily is not difficult.Capital Fee Arbitrage: Earn risk-free price differences passively
Core Logic: When the capital fee of a contract (daily subsidy to both long and short sides) exceeds the interest of holding spot positions, buy the spot while opening an equivalent short position to lock in the interest difference.
For example: if a certain coin's capital fee is annualized at 18%, and spot holding interest is annualized at 2%, the 16% difference is pure profit - 100,000 U principal can earn 16,000 U passively in a year, with very low risk.Hedging Trading: A 'sure win' method before major events
Suitable Scenario: Use this before policy announcements or data releases when you're unsure of the direction but know there will be volatility.
Operating Method: Simultaneously open equivalent long and short positions; after volatility occurs, close the losing position and keep the profitable one, effectively allowing you to 'earn from volatility regardless of direction.'
Third Tip: Treat Risk Control as a Lifeline - First learn not to lose, then talk about making money
The premise of making money with contracts is 'staying alive'; these risk control disciplines are more important than technology:
Position Management: Don't put all your eggs in one basket
Use the 'Pyramid Averaging Method': Initial position at most 1%, add 0.5% after a 2% profit, with a total position never exceeding 3%, to avoid losing everything.
If you incur a loss, use the 'Inverse Pyramid Reduction Method': Reduce 1% of your position for a 1% loss, reduce 2% for a 2% loss, lightening your position the more you lose to prevent a margin call.Stop-Loss Discipline: Provide 'insurance' for your capital
① Fixed Stop-Loss: Set a stop-loss line of 2%-3% when opening a position, automatically closing when the price hits, and don’t manually change it!
② Trailing Stop-Loss: After a 5% profit, move the stop-loss line to the cost price; even if the market reverses, you won't lose your principal.Emotion Management: Don’t let your mindset collapse
Three consecutive losing trades? Force yourself to stop for 24 hours; don’t think about 'recovering' in the next trade - 90% of revenge trading results in losses.
Develop the habit of keeping a 'Trading Journal': Write down your reasons for opening positions, profits and losses, and your feelings at the time; looking back can help identify which actions were influenced by emotions.Capital Planning: Use 'spare money' for contracts
At least reserve 12 months of living expenses, keeping trading funds strictly separate. Remember: even if a margin call occurs, it must not affect your ability to eat or pay rent; otherwise, your mindset will be completely disrupted.
Finally, I want to share some hard truths
In the crypto world, there are three ways to earn 1 million: holding during a bull market, betting on a moonshot coin, and high leverage bets on the right direction. But the reality is that most people fall into the trap of 'gambling'.
Contracts are not a casino; they are a long-term battle of cognition and discipline. It is recommended that beginners first practice 100 trades using 1% of their capital on a demo account to develop the instinct of 'not losing money' before entering live trading.
Remember: slow is fast; being able to avoid traps and stabilize your mindset means making money is just a matter of time.
I let the data speak for itself, providing you with a clear direction - support levels, exit points, and trend judgments are all actionable strategies.
Follow Yi Fan, don’t guess the ups and downs, only provide plans that can help you profit.
Daily Focus: API3 SOL LINK
