I have seen someone turn 5000 yuan into 1 million in half a year, and I've also seen someone earn 500,000 yuan one day and lose it all the next day — this isn't a matter of luck, but the execution of different strategies in trading.

After 4 years of practical experience in contracts, I have encountered enough pitfalls to fill a truck. The strategy I have summarized is based on two core principles: "Defend" and "Be Ruthless" — be as stable as a mountain when it's time to defend, and never hold back when it's time to be ruthless.

1. Wait: Spend 90% of your time waiting and 10% of your time earning

Newcomers often think that "not trading is losing money"; they feel uncomfortable if they don't open a position in a day. However, the people I’ve seen making profits are like "snipers" — they lie still for 90% of the time, waiting for the perfect moment to pull the trigger.

Last year, a follower started with 5000 yuan and traded daily for the first three months, spending over 800 yuan in fees while losing 30% of their account. Later, after learning from me to "wait for the market", they only acted when BTC and ETH showed "violent market movements": for example, breaking through key resistance levels or surging more than 5%. As a result, in the fourth month, they made a 40% gain in one trade, equivalent to the chaotic three months prior.

What is a "violent market movement"? There are three signals:

- Breaking through key levels + increasing volume: BTC has been consolidating around 30,000 yuan for half a month, suddenly breaking through 32,000 yuan with a large bullish candle, and the trading volume is three times that of the previous day — this indicates "capital is seizing the opportunity". Entering at this point, there is a high probability of more than 10% volatility within three days.

- Major news like the Federal Reserve announcing interest rate cuts or Bitcoin halving often leads to prolonged market movements. Last year, when the Federal Reserve cut interest rates, I waited for 2 hours to confirm the trend before entering the market, making a 30% profit in 5 days.

- Sector-wide upward movement: For example, if the DeFi sector rises collectively, with the leading coin increasing by 10% and other coins following suit — this indicates "it’s not just a single coin's movement, but a sector opportunity", which is safer.

2. Roll: Use profits to roll over, with the principal always being the "safety cushion"

"Increasing position size after making money" is a fatal mistake for new contract traders. I once made a 50% profit on ETH, and in a moment of excitement, I invested all my principal and profits, only to see the market reverse. Not only did I lose all my profits, but my principal also dropped by 20%. It was only later that I understood: the principal is "life", and the profit is "icing on the cake"; they cannot be confused.