Learn this method for perpetual contracts: (Rolling positions + Martingale strategy required), the cryptocurrency space will become your 'ATM'!
A method tested personally: In March 2025, in one month, only doing contract rolling compound interest, starting with a small capital of $3000, earned over $120,000, equivalent to over 800,000 CNY! (Very suitable for newbies, simple and practical, with a success rate of 98%!)
1. Rolling positions.
Split the capital of $10,000 into 10 parts: $1,000.
Use $1,000 for contract rolling to quickly accumulate to $100,000! (This may take about 1 to 3 months.)
In the cryptocurrency space, $1000 is about 140U!
Recommended optimal solution: contracts.
Each time use $30 to gamble on hot coins, ensure to take profits and stop losses; 100 turns into 200, 200 turns into 400, 400 turns into 800. Remember a maximum of three times! Because the cryptocurrency world requires a bit of luck; gamboling like this can easily yield 9 wins and one loss! If you pass all three rounds, then your capital will rise to $1100!
At this point, it is advisable to use a three-tier strategy to play.
Trade two types of orders in a day, ultra-short orders and strategy orders; if an opportunity arises, then enter trend orders.
Ultra-short orders are used for quick strikes, with a 15-minute level; advantages: high returns; disadvantages: high risk.
Only do trades at Bitcoin Auntie level.
The second type of order, strategy order, is to use small positions, such as 10x leverage with $15, to make contracts around the 4-hour level, saving profits for regular investments in Bitcoin.
The third type, trend orders, medium to long-term trading, directly goes for the good points: eat a lot.
Identify suitable price points and set a relatively high risk-reward ratio.
2. Martingale strategy required.
The strategy of rolling $100 to $1000 guarantees no losses; this strategy has silenced 99% of people! (Martingale strategy, a strategy that frightens market makers, sharing with everyone.)
Starting with 100U, every order must set 100% profit-taking (double and run).
Lose and double down (100→200→400→800...) Win once to recover all losses + net profit of $100.
Be prepared for 10 rounds of capital (losing 10 rounds ≈ the same probability as being struck by lightning 3 times).
Do not look at market trends, do not consider policies, invest with your eyes closed; this time go long, next time go short, repeat operations; each time the win-loss probability is 50%! As long as one round succeeds, all losses are compensated, and you earn $100.
Mathematics does not lie:
One profit = compensating all losses + gaining $100.
10 times error tolerance = your capital lives 10 more lives than the market.
But! Newbies must watch these 3 life-and-death lines:
Absolutely do not increase positions (if you say you will double, you must double).
Make a profit and withdraw immediately (100% stop profit is a mandate).
At least prepare enough capital for 10 rounds.
Do you dare to try?
Reflections and insights on contract trading after more than 10 years of cryptocurrency speculation.
1. Contracts are essentially just a tool.
Before I started in contracts, I heard various opinions. Some think contracts are like a flood beast, while others believe they are a money-making machine. But in reality, it’s just a tool, and the key is how to use it. Typically, large funds use them for asset hedging, but many treat them as a means to get rich (I initially had this thought too). This is a zero-sum market; if someone profits, someone must lose. Coupled with transaction platform fees and possible market manipulation by market makers, retail investors find themselves in a difficult position, and saying contracts are like a meat grinder is not an exaggeration. If you want to survive in this field, you must master the survival rules; only the fittest can survive.
2. When opening a position, it is essential to set a stop-loss (please repeat this three times in your mind).
The stop-loss range can be between 1 and 100 points, specifically determined based on the position ratio.
3. The so-called 'ever-profitable method.'
Set stop-loss at the original price, first use one-tenth of the position for testing. If the trend judgment is correct, continue to add positions, then take profits during the pullback. It sounds beautiful, but the reality is very cruel. First, judging the trend is extremely difficult; the market mainly exhibits fluctuating trends, and there are very few opportunities to grasp a one-sided trend. Secondly, even if the judgment is correct, continuing to add positions will raise the original opening price, and once there is a slight pullback, it may trigger the original price stop-loss, and the transaction fees from frequent operations can be shockingly high. Although making the right call once can multiply the capital several times, doing so long-term will ultimately just make you work for the trading platform, as there is no sustainability unless you make a profit and leave immediately.
4. Newcomers often dislike setting stop-losses.
I have also gone through this phase; the emotion of loss aversion, once amplified, can drive people to trade frantically, thus infinitely increasing risks. Once the capital chain is broken, you can only watch helplessly as liquidation occurs, and often it happens before you even realize it. Initially, you just wanted to earn a tenth of the profit, but ended up losing the entire capital.
5. There are methods to earn eternally from contracts, but certainly not ones that newcomers can master.
Many people participate in contract trading to earn big money with small capital, but to make big money, there are only two paths: one is victory through position, that is, heavy positions; the other is victory through amplitude, such as significant drops like 312, 519, or substantial rises like from 10K to 60K. To seize such amplitude, any analysis may be useless; there's only one method: don't take profits. The most sophisticated profit-taking method is not to take profits, but this is extremely counterintuitive. Out of 100 times, even 90 times could be losses or break-even, which I also cannot achieve. With small positions, even large amplitudes won’t yield big profits; with large positions, small amplitudes are ineffective, and it’s even easier to get liquidated. All those who make big money are experts at balancing position and amplitude.
6. The market changes unpredictably, just like how soldiers have no constant strategies, and water has no constant shape.
The market always tends to move in the direction of least resistance; betting on trends and guessing sizes is essentially no different; learning all the technical analysis may be useless. Knowing how to read K-lines and some basics is generally sufficient. Technical analysis is not difficult; just remember this sentence: if the trend is upward, it will continue to rise; if the trend is downward, it will continue to fall; if it rises a lot but pulls back little, it will rise even higher; if it falls a lot but only rebounds a little, it will continue to fall. The larger the cycle, the more effective this rule becomes. Once you understand this, you grasp the core rules of technical analysis.
7. The only way to really make big money is by being in the trend.
Engaging in rolling positions in the trend is fine during oscillating markets with small positions, but if such trading habits are formed, it will be very difficult to have hopes of becoming rich in this lifetime. Short-term trading may bring quick money, but losses also come quickly, and over time, the profits may not even cover the transaction fees. If you think you are the chosen one, go ahead and try, but remember that losing money often starts from winning money.
8. The timing of entry is very important; many losses are caused by the fear of missing out.
When there is no position, during the decline, wait until the rebound to open a short position; remember not to chase the decline; the same applies when the market is rising; wait for the pullback to enter, do not chase the rise. Doing this may cause you to miss some strong trend markets, but most of the time it will be safer. However, many people only see profits and ignore risks, and ultimately blame others for making them miss opportunities.
9. Do not be afraid.
Many people have lost money in the futures market and become afraid to open positions; when they trade again, they become timid and hesitant. Losses lead to overly strong purposefulness, excessive desire for results, always thinking about making profits, and wanting to avoid losses. This mindset makes it impossible to profit. As the ancients said, 'Do not rejoice over gains, do not grieve over losses.' In the trading field, this can be understood as: not being joyful because of profits and not being sad because of losses. When your mind is calm enough, you will achieve success. Trade with the enthusiasm and passion you had on your first day in futures; do not fear the wolves in front and the tigers behind. If you make a mistake, set a stop-loss; if you are right, hold on. Do not rush to exit before the trend reverses, or you will only miss out.
10. Enthusiasm.
No matter what you go through, maintain enthusiasm and passion, with a longing for the beauty of life. Be as determined as you were on your first job, and as daring as you were in your first love. Many things in life are like this, whether in business or love; there will not necessarily be a result, and the probability is that there will be no result. But if you do not work hard and do not give, you will certainly end up with no results. Just focus on doing what you should do, without overly worrying about the outcome.
11. Many people think about opening positions constantly, even operating fully; for them, being in cash is even more uncomfortable than losing money.
In fact, the time for trending markets is often very short; controlling drawdowns is the most important. How to control drawdowns? Remaining in cash is the best method. Do not always think about catching every segment of the market; catching one or two opportunities a year is enough. Missing out is very normal; there’s no need for regret. As long as you are still in this market and survive long enough, there will be plenty of opportunities in the future. Time is the only code for retail investors; maintain a calm mind, patiently wait, and making money is just a secondary matter; enjoying life is fundamental.
12. The mindset and insights of trading.
In trading, mindset is more important; knowledge is like techniques, while mindset is internal strength. Just like Qiao Feng can easily defeat several Shaolin monks with the Taizu Changquan, it is because he has profound internal strength. Seeing accurately is not of much use; what matters is what to do after seeing accurately, what to do after making a mistake, how to maintain composure in positions, how to have a good mindset, how not to fear missing out, and how not to fear drawdowns. If you always hold a mindset of wanting to win and fearing losses, it is very difficult to make money in this market. Some things may take time for newcomers to feel, but as long as you spend enough time in this market, you will realize these are all truths.
To truly make money in the cryptocurrency space, first, as a trader, you must know: the market rewards not your predictive ability, but your capital management ability!
No more nonsense, let's get straight to the point!
Why do many people disappear from the investment market after just a few months?
Or after losing everything, getting more money to continue, keep losing, or even borrowing to invest, falling into a death spiral, then leaving the market forever.
Novices often rely on social media, friend recommendations, or trending topics (like cryptocurrencies, meme stocks), influenced by survivor bias 'wealth myths,' blindly following trends and lacking independent analysis skills. After small profits in the early stages, they often mistakenly believe they are 'gifted,' increasing leverage with god-like operations, expecting to double their returns overnight, but ignoring the value of long-term compounding, not wanting to slowly grow rich.
The difference between professional traders and retail investors is that the former always has risk control, while the latter never has risk management!
The essence of trading is a probabilistic game, and the essence of investment is the realization of cognition. The market always punishes all opportunistic mindsets; those who survive usually possess discipline, continuous learning abilities, and a respect for market risks.
When you first enter the market, you must understand that if you do not learn, if you do not have your own trading system, if you do not have risk management abilities, you will eventually lose everything and leave the market forever. The outcome of $10,000 and $10 million is the same.
1. What is risk management (Risk Management)?
Risk management refers to systematically identifying, assessing, and controlling the potential risks of investments to minimize losses and maximize returns. Ensure that even in the case of consecutive wrong predictions, you can survive and maintain capital without going bankrupt.
1. The essence of risk management: it is not about avoiding losses, but controlling the extent and frequency of losses to ensure long-term survival.
High returns inevitably come with high risks; if one blindly avoids risks, they might as well not invest at all, such as always holding cash, resulting in failing to even outpace inflation and missing every great opportunity to buy low. Frequent trading comes with increased costs (like fees, slippage).
Therefore, 'avoiding losses' is a false proposition. We do not seek 'not to lose money' but ensure losses are within an acceptable range, that is, 'losing clearly and controllably.' This way, one can survive in the market long-term and achieve compound growth.
2. The goal of risk management: to protect oneself using a set of certain rules in an uncertain market to survive long-term, and it absolutely does not mean avoiding losses.
Loss is an inevitable cost of the market; any strategy has a period of losses, even Buffett and Simons. Trying to 'never lose' leads to excessive conservatism, missing out on opportunities while only keeping cash in the bank.
Shifting from 'predictive thinking' to 'responsive thinking' is key to long-term survival, acknowledging ignorance and the unpredictability of the market! Do not pursue 'precise bottom fishing and peak escaping,' but rather 'no matter how the market moves, I have a response plan.'
Focus on the process rather than the single result; good decisions ≠ good results (may incur short-term losses); bad decisions ≠ bad results (luck may temporarily mask errors).
1. Losses are controllable → Avoid 'sudden death.'
2. Profits are expected → Seize the trend.
3. Long-term compound interest → Become the final winner.
The market is like a battlefield; those who survive are not the bravest but the most disciplined. The highest realm of risk management is to execute like a machine, eliminating 'this time is different.' By consistently adhering to correct rules, the probabilities will eventually stand in our favor.
The lesson from Jesse Livermore states: 'The reason I went bankrupt, is not because of wrong judgments, but because I did not adhere to my rules.'
2. How to do risk management? And the three dimensions of risk management.
1. Money management (Money Management).
How to maximize returns with limited capital while keeping risks controllable?
Contracts: Newbie learning phase 1%, practice phase 2%~3%, profit phase 5%, maximum single position holding ratio 10% (exceeding this poses huge risks).
Spot: build positions in batches (3 to 5 parts) + 20% cash position (to guard against black swans).
Why do most people blow up their accounts due to position control?
Full margin all-in: betting 100% on a single wager, one mistake equals zero.
Counter-trend increase: doubling down on losses (Martingale), accelerating bankruptcy.
No stop-loss plan: letting losses expand, ultimately forced to cut losses.
Emotional adjustments: expanding after profits (adding positions), fearing after losses (cutting losses).
Case study:
- In 2020, crude oil futures plummeted to negative values, causing heavy investors to liquidate overnight.
- In 2022, LUNA cryptocurrency went to zero, leaving full position investors with total losses.
2. Stop-loss.
The core tool of risk management is to use rules to limit losses and protect capital. Depending on different trading logic and market conditions, stop-loss can be divided into fixed stop-loss (key levels), trailing stop-loss (time stop-loss, space stop-loss).
The market rewards not your predictive ability, but your capital management ability. In the financial market, the key to success is not whether you can accurately predict market trends, but how you manage your capital.
Assume there are two traders: A and B.
- Trader A: has excellent predictive ability, with an accuracy rate of 70%. But he invests 50% of his total funds in each trade. Even if he is right most of the time, a few wrong predictions can lead to significant losses or even bankruptcy.
For example:
- Initial capital: $10,000.
- Each trade investment: $5,000.
- Two consecutive mistakes: $10,000 → $5,000 → $2,500.
- Trader B: has only a 50% accuracy rate but strictly manages funds, investing no more than 2% per trade and setting a stop-loss of 1%.
For example:
- Initial capital: $10,000.
- Each trade investment: $200.
- Stop-loss: $2 (1% of $200).
- Even if there are multiple consecutive mistakes, the losses are limited, allowing for waiting for profit opportunities.
In the long run, Trader B is more likely to survive in the market and accumulate wealth, while Trader A may be eliminated due to a few major mistakes.
- Warren Buffett: One of his investment principles is 'do not lose money,' reflecting the importance of capital protection.
- George Soros: once said, 'What matters is not whether you are right or wrong, but how much you make when you are right and how much you lose when you are wrong.'
Predicting market trends is certainly important, but it does not guarantee consistent correctness; good capital management can ensure survival and steady growth of capital in uncertain markets. Therefore, investors should focus more on developing and executing strict capital management strategies rather than overly pursuing prediction accuracy.
The success of trading does not depend on how many times you predict correctly but rather on how much you earn when you are right and how much you lose when you are wrong. The core of trading is not prediction but risk management. Losses are part of trading but must be controlled through capital management. The key to profitability is 'cutting losses short and letting profits run,' which entirely relies on position management and stop-loss strategies.
As the old Wall Street saying goes: A novice asks, 'What should I buy?', an expert asks, 'How much should I buy?'
Survival guide for cryptocurrency contracts: Shocking! 90% of people don't know the secrets to avoiding liquidation.
Survival guide for cryptocurrency contracts: secrets to avoiding liquidation with a capital of $5000.
In the ever-changing world of cryptocurrency, contract trading attracts many investors with wealth dreams because of its potential high returns brought by high leverage. However, high returns always come hand in hand with high risks. For investors planning to enter the cryptocurrency contract space with a capital of $5000, every step must be taken with caution, as a slight mistake can lead to total loss. The following points are key to avoiding liquidation and achieving stable investments in cryptocurrency contracts.
Plan funds reasonably and strictly adhere to safety bottom line.
Capital allocation is the primary checkpoint in contract trading, directly determining the risk tolerance of the trade. When using $5000 as capital, it is essential to strictly control the opening capital. It is recommended to only use a maximum of $500, which is 10% of the capital, for opening a position. This is like in a battle; you cannot deploy all your elite troops at the start, you must leave room to cope with various emergencies. The remaining $4500 should be reserved as emergency capital for additional investment if needed. A one-time all-in approach is akin to a desperate gamble; if the market trend goes against expectations, you will end up in a dire situation with no chance of recovery.
Focus on mainstream coins to avoid potential risks.
When selecting currencies, you should maintain a clear mind. Bitcoin, as the leader of digital currencies, has a high market recognition and strong liquidity, with price trends that are relatively more regular. In contrast, altcoins often lack solid value support, making prices susceptible to manipulation and extremely volatile. Many investors, in their greed for more, have ventured into various altcoin contracts and ended up stepping into 'minefields'. For example, some blindly followed trends to invest in unknown altcoins, only to see those coins plummet without warning, leading to liquidation and significant losses. Therefore, focusing on Bitcoin for contract trading can reduce risk to some extent.
Set stop-loss defenses to protect the investment capital.
Setting a stop-loss when opening a position is key to survival in cryptocurrency contract trading. The market is incredibly volatile, and no one can accurately predict every price fluctuation. A stop-loss acts as a 'fuse' for the investment account, automatically closing positions when the price hits the preset stop-loss level, thus limiting further losses. It is important to adjust the stop-loss distance based on the real-time market fluctuations. If the stop-loss is set too close, it may be triggered frequently due to normal market volatility, leading to unnecessary losses; if set too far, it may not provide timely protection when risks arise. Investors must not harbor luck-based thoughts, believing that prices will reverse in their favor without setting stop-losses; such thinking often leads to greater crises.
Develop accumulation strategies to achieve steady profits.
Accumulation is an art that requires careful planning. When trading contracts, the remaining capital should ensure at least four additional investments. During the accumulation process, the investment amount should gradually increase to lower the average holding price, thus achieving profits when prices rebound. For example, when the price drops after the initial position is opened, follow the plan for the first additional investment, increasing the amount slightly compared to the first opening. As the number of additional investments increases, the average holding price will gradually decrease. When the market reverses and the price rises to a certain extent, profits can be realized. However, additional investments must be based on an accurate judgment of market trends; blind accumulation only increases losses.
Strengthen capital management to control risk levels.
In contract trading, capital management is crucial. The risk level of a single trade should be strictly controlled at 2% - 5%. If the risk level is set too high, when the market trend turns unfavorable, the drawdown of the account funds will be significant, which not only severely impacts the investor's capital but can also easily throw off their mindset. Once the mindset collapses, subsequent trading decisions often become blind and impulsive, further increasing losses. Therefore, controlling the risk level of a single trade reasonably is key to maintaining trading stability and sustainability.
Refine the trading system and accumulate practical experience.
A complete trading system is not built overnight; it requires investors to accumulate experience and summarize lessons over a long period of trading practice, and to optimize and improve it. In the early stages of trading, investors should not recklessly invest a large amount of capital but should first experiment with a small amount of capital. By trading with a small amount, investors can familiarize themselves with the market's operating rules, understand strategies for different market conditions, and test whether their trading ideas and methods are feasible. In this process, continuously summarize successful experiences and lessons from failures, gradually refining the trading system. Only when the trading system has been tested in multiple real-world scenarios and can maintain stable profitability in different market environments should investors consider increasing their investment.
Enhance execution, strictly adhere to trading discipline.
Execution is one of the key factors determining the success or failure of contract trading. During trading, investors must strictly follow their stop-loss plans, and no matter how complicated the market situation is, they cannot abandon stop-losses due to momentary hesitation or luck. Additionally, they must resolutely avoid counter-trend buying. Once a market trend forms, it often has strong inertia; counter-trend operations are like a mantis trying to stop a car, with a very low probability of success. Moreover, do not attempt to gamble on low-probability events; the market is highly uncertain, and seemingly random low-probability events, when they occur, can often lead to devastating blows.
Exclusive strategy for small retail investors, cautiously test the waters.
For small retail investors with relatively less capital who are new to the scene, caution is even more necessary when participating in cryptocurrency contract trading. First, it is recommended to use funds that, if lost, would not significantly impact their lives, as this can alleviate psychological burdens and avoid making trading decisions influenced by excessive worries about losses. Secondly, choose low leverage of 2 - 3 times; although low leverage has relatively limited returns, it can effectively reduce risks. Combine capital planning with larger cycles, primarily operating on larger cycles such as 1-hour, 4-hour, or daily levels. The price trends in larger cycles are relatively more stable and less affected by short-term volatility, helping investors better grasp market trends and make reasonable trading decisions.
Contract trading in the cryptocurrency world is like sailing in a turbulent sea, with significant risks. Investors must always remember the principles of light positions, following the trend, and stop-losses, maintaining rationality, and avoiding blindly following trends or impulsive trading. Only in this way can they minimize the risk of liquidation and achieve steady asset appreciation amidst the waves of cryptocurrency contracts.
I am (Army Brother Crypto), with 6 years of deep experience in the cryptocurrency field, demonstrating the truth of short-term speculation and having a methodical approach to medium and long-term layouts. I accurately capture the optimal trading moments, providing you with the information needed for investment decisions. Choose the right direction, find the right rhythm; here you will find the professional perspective you need.
