If you are in a losing position in contracts and want to turn losses into gains, then you need to carefully read this article. Follow the six rules of discipline below to ensure you can achieve stable profits!

1 Learn to take profits and cut losses

The market changes rapidly, and you must learn to take profits and cut losses. This isn’t too difficult; taking profits controls your greed. A cryptocurrency will not rise indefinitely, nor will it fall perpetually; there are cycles. Therefore, taking profits becomes especially important. Don’t always worry about closing a position too early and missing out on further profits! Remember, you can’t earn all the money in the crypto market, but you can lose all the money in your account. Cutting losses means giving up sunk costs, which is also difficult. Don’t always think that if you hold on, the market will reverse in the next second. Never think that way! Although it's painful to cut losses, it can truly save your life.

2 Don’t trade too frequently

A major taboo in the crypto market is to always think about profiting from both sides. Wake up! Not many people can achieve that. Be content with profiting from one side. Another point is transaction fees; low leverage is okay, but high leverage is painful. When you open a position, you immediately lose 1-2 points of profit. You need to ensure that this trade can earn you money; otherwise, this trade is meaningless, and all your earnings will just go to the market maker as fees!

When the market is hard to understand, do not blindly open positions. At this moment, you should say that missing the market is uncomfortable. So I want to ask you, is it more uncomfortable to "miss out" or to "lose money"? Not understanding the market and blindly opening positions is like opening a blind box! Trading should focus on probability advantage; no one can accurately predict whether it will rise or fall (of course, you can use hedging to reduce directional errors). The market changes too quickly; all we can say is there is a probability of rising or falling.

4 Step by step

Don’t always think that you can become rich overnight; impatience will lead to failure! The crypto market won’t make you rich instantly. For example, if you use 100 as capital to go long with a 10x leverage, your position will be 1000. If it rises by one point, you earn 10, and if it rises by two points, you earn 20. That’s a breakfast right there! Currently, working in a factory earns 15 per hour. If you make three or four trades a day with a win rate of 60-70%, isn’t that more comfortable than working in a factory?

5 Do not over-leverage!

Absolutely do not over-leverage! An unexpected event could wipe you out. For example, if the market is expected to rise and then suddenly plunges due to a major news event, and you haven't set a stop-loss, then it's game over! So don’t rush; definitely trade with a light position, prioritize stability. The crypto market is not lacking in opportunities; it will always be there, at least for the next 10 to 20 years. So don’t be fooled by the illusions in front of you!

6 Know the unity of knowledge and action

This is indeed quite difficult. Even I sometimes can’t fully adhere to it. Human weaknesses are hard to manage! I was once a novice too, and I didn’t understand many basic issues back then. I blindly opened positions without any plan! After being in the industry for a long time, you will realize that the crypto market can truly change your destiny! The prerequisite is that you need to have a mindset far beyond others, the courage to take risks, the decisiveness to cut losses in time, and the determination to survive even at a cost! Otherwise, you will never become one of the top one percent!