The crypto contract market is scarier than gambling and more addictive than drugs! With a mobile phone, you can play 24 hours a day, 365 days a year, at any time and any place. Is 20x leverage exciting enough? If not, there’s also 50x leverage and 100x leverage, with desires infinitely magnified.
(The harsh strategy for turning the tables in the crypto market: going from tens of thousands to 20 million, sticking to rolling positions all the way)
Three years ago, a friend went into seclusion after losing 20 million due to a contract liquidation. Now, not only has he cleared his debts, but he also holds several million, earning eight figures annually. He said that going from tens of thousands to 20 million relied on rolling positions, but it requires waiting for significant opportunities.
The significance of a 1 million principal is: a 20% increase in spot trading means 200,000, and being able to endure to this amount means understanding the logic of making money and maintaining a stable mindset; the follow-up is just about replicating the experience. Don’t talk about making tens of millions; money should be earned bit by bit.
The core of trading is to distinguish opportunities: practice small amounts in normal times, and use rolling positions when big opportunities come - after making leveraged profits in the trend, increase positions due to the reduction in actual leverage, allowing profits to roll.
Three situations suitable for rolling positions:
- Long-term sideways movement with low volatility, indicating a direction is about to be selected;
- If a bull market surges and then plummets, you can buy at the bottom;
- A breakout above the weekly major resistance level (or a breakout below the major support level) will signal a trend change.
Operation method:
- Increase position with floating profit: buy after confirming that the cost has dropped;
- Base position + T: hold on to some of the stocks and buy low and sell high of some of the stocks. The core is to reduce costs and increase profits.
Time to add to your position:
- When the trend breaks through the convergence range, increase your position to take advantage of the main uptrend and sell the increased position after making a profit;
- When the trend pulls back to near the moving average, buy in batches and wait for the next wave.
"Stupid way" (almost no loss):
1. The market plummets, but the coins you hold drop only slightly – there are market makers protecting the market, so hold on;
2. Beginners: Focus on the 5-day moving average for short-term trading and the 20-day moving average for medium-term trading. Hold above the moving average and sell if the price drops below it.
3. Buy decisively if the main upward trend does not increase in volume; hold if the price rises with large volume or falls with small volume but the trend is not broken; reduce your position if the price falls with large volume and breaks the trend;
4. If there is no movement or a 5% drop in the stock price within three days after a short-term purchase, sell/stop loss immediately;
5. The coin has fallen 50% from its high and has been falling for 8 consecutive days – oversold, and a rebound may occur;
6. Buy leading coins and be bold in “buying high and selling even higher”;
7. Follow the trend and buy at the "right" price. Don't guess the bottom and abandon weak coins in time.
8. Don’t be complacent, focus on sustained profitability, and build a stable trading system;
9. If you are not sure, just keep your position short. Make sure you break even before making money. It’s more about the success rate rather than the number of times.
Long-term trend "wealth code":
- Halving period: Buy BTC, BCH, etc. 180 days before the halving and hold until 30 days after the halving;
- Leading stocks make up for the rise: look for the second tier of stocks in the same sector that have risen less;
- Triple technical verification: weekly MACD golden cross + daily line breaking the box + hourly line with large volume and a bullish trend enclosing a bearish trend;
- Institutional holdings: Large addresses increase holdings + on-chain transaction volume surges;
- Fixed investment during a bear market: Invest 10% of your principal every month in blue chips for 12 consecutive months, and your returns may exceed 300%.
Risk warning: Newbies can use simulated trading to test, and the single loss should not exceed 2% of the total funds.
The key foundation: Live a balanced life. If life issues aren't properly addressed, trading can easily become chaotic. Keep your life in order so you can maintain a calm trading attitude.
New traders shouldn't just focus on buying and selling; correct procedures are a hundred times more important than technical skills. Think, trade, and live like a successful trader!
Three tips for beginners to avoid pitfalls in contracts: reject gambler mentality and rely on discipline to achieve steady profits
Tip 1: Treat the contract like a coin toss – understand the rules before placing your bet
1. Underlying Logic
Going long = betting on the positive side (increase), going short = betting on the negative side (decrease), only when the direction is correct can you make a profit.
Leverage is not magic, but an amplifier: 10x leverage = exchanging a 1 yuan coin for a 10 yuan chip. If you guess right, you will earn 10 times, and if you guess wrong, you will lose 10 times.
2. Practical points
Before placing an order, ask these three questions (limited to 3 seconds): ① Is the current trend upward or downward? ② Is there any major news that could disrupt the trend? ③ Where is the stop-loss point?
Use the 5-minute chart to find the "second confirmation" signal, such as a breakout and then a pullback to the support level, and then decide whether to enter the market.
Tip 2: Use strategy instead of guesswork – let the system make money automatically
1. Grid Trading
Applicable scenarios: volatile market (e.g. BTC fluctuates in the 60k–65k range for 3 days).
Operation settings: Set one grid every 500U, automatically buy low and sell high, and run in a 24-hour cycle.
Return reference: 5% fluctuation range + 3x leverage, 15% net interest rate per box, and average daily return of approximately 3%-5%.
2. Funding Arbitrage
Core principle: When the contract funding fee is higher than the spot position interest, go long on spot and short on perpetual contracts to lock in the risk-free spread.
Case reference: The annualized funding fee of a certain currency is 18%, the annualized spot fee is 2%, the interest rate spread is 16%, and a principal of 100,000 U can earn a stable profit of 16,000 U in one year.
3. Hedging
Applicable scenarios: The eve of major events (such as policy conferences and data releases) when the direction of fluctuations is unknown.
Operation method: Open long and short orders of equal value at the same time, close the losing orders after fluctuations, and keep the profitable orders to achieve "profit in both rising and falling".
Tip 3: Treat risk control as your lifeline – learn how to avoid losses before making money
1. Position Management
Pyramid position increase: 1% for the first position, add 0.5% after 2% profit, and the total position will never exceed 3%.
Reverse pyramid reduction: reduce 1% of your position if you lose 1%, reduce 2% of your position if you lose 2%, and strictly prevent margin calls.
2. Stop-loss discipline
Fixed stop loss: Set a 2%–3% stop loss line when opening a position, and the position will be automatically closed when the price is triggered.
Moving stop loss: After the profit reaches 5%, the stop loss moves up to the cost price to firmly lock in the profit.
3. Emotional Management
3 consecutive losing trades → Forced stop trading for 24 hours to avoid “retaliatory opening of positions”.
Create a "trading diary": record the reasons for opening each position, profit and loss results, and your mood at the time, and use data to correct impulsive operations.
4. Financial Planning
Strictly isolate living expenses: set aside at least 12 months of daily expenses to ensure that even if the account is liquidated, it will not affect basic living expenses.
Indicator assistance: MACD and KDJ are for reference only. The core judgment basis is trend + volume and price + real-time news.
Conclusion
A contract is not a casino, but a protracted battle of cognition and discipline.
It is recommended to use 1% of your funds to complete 100 orders in the simulation before entering the real market.
First, make “not losing money” an instinct, and then let “making money” happen naturally.
How I used the "Pyramid Model" to build a stable profit system in the cryptocurrency world! It only takes six steps. Without further ado, let's get straight to the point! After over a decade of cryptocurrency trading, I've developed a comprehensive trading pyramid model to help anyone seeking consistent and stable profits as a trader. To further improve your trading performance, you need to make a positive trading mindset a habit.
There are six steps to successful trading. We can call these six steps the six cornerstones of successful trading. They are: choosing a focus, determining a trading style, using the right trading techniques, controlling position sizing, internalizing profitable trading patterns into habits, and self-control.
For a trader, focus is one of the most powerful weapons in your arsenal. It determines how you view the market. More importantly, it determines what you ignore. With the vast amount of information generated by any market, you need to ignore most of it. For some traders, their focus might be reading the financial media; for others, it might be weekly meetings with their traders; for still others, it might be examining technical charts; or perhaps you've invested in a short-term trading system and your focus is following its rules.
You will immediately understand that each of these perspectives will lead to a completely different view of the market. Someone reading an article written by a stock commentator or analyst will have a completely different understanding and perspective of the market than someone trading according to a short-term trading system. This will differ in the following aspects:
Timeframes – This can range from minutes to months or years. Markets – Markets include stocks, futures, commodities, and CFDs. Each type of market presents different risks and opportunities. Objectives – Some traders seek long-term returns and dividends, others seek short-term trading profits, and many fall somewhere in between.
Even if you are similar to others in all three aspects, other traders may still have very different ways of profiting from the market. For example, one of my colleagues focuses on profiting from market gaps, while I like to trade when prices rise or fall, and others use candlestick charts or moving averages... The differences are practically endless.
You still need to consider money management, but the trading system itself takes care of risk control. Since your focus is very narrow, the entire trading process will become much simpler.
Step 2 to Successful Trading: Decide on Your Trading Style
The so-called talent is essentially a "trading style" that matches you. There are many different trading methods in the market. Even if you have determined your focus, there will still be many trading methods based on that focus.
For example, your focus might be on hedging a market target price. Based on this focus, you might trade as the market price moves toward your target price after the market opens. However, some traders might adopt a more relaxed trading style, simply placing a limit order at or near their target price, adding a suitable stop-loss, and then going off to play golf.
Another trader might adopt a more aggressive trading style. They might carefully observe price action at the opening, exiting the trade quickly if it doesn't go their way. If it does, they'll quickly move their stop-loss to lock in profits. In both cases, the focus is identical, or very similar, but the trading styles are vastly different. Which trading style is better?
Your trading style will also depend on your personality and psychology. Or in other words: your trading style is a combination of your own talents, personality, core values and beliefs.
Step#3to Successful Trading: Use the Right Trading Actions
The concept of "correct trading" itself is simple and straightforward, but it also has two distinct aspects. Your focus must give you an edge that will produce expected profits over the long term. And you must trade correctly to realize your edge.
The first aspect relates to the nature of being a professional trader, meaning you need to carefully examine your focus to ensure it truly makes money. You are responsible for how you trade, and you need to carefully examine your approach to ensure it earns you money. The second aspect is achieving excellent trades to fulfill the positive expectations of your trading method. Once you are doing this and have the confidence to maintain it, you are ready to move on to the next step...
Step 4 to Successful Trading: Control Your Position Sizing
When you actually start trading, you'll encounter the issue of position sizing. The following key points are important.
You've established your focus. You've become an expert in your area of focus and developed a trading style. You've carefully tested the components of your trading process in the markets and know you have an edge. You've demonstrated this edge in live trades. You understand the key concepts of money management (which, in a sense, is also part of your trading style).
Once all of these elements are in place, if you want to make a decent amount of money as a trader, you must increase the size of your trades. As you progress, and if you trade correctly, your account balance will continue to grow, and you can continue to increase the size of your trades.
You need to consider money management. In simpler terms, this means avoiding risking too much on any given trade. I recommend setting a risk factor of 2%-4% on each trade. This means if you have a total trading capital of £10,000, you should only risk £200-400 on each trade. Generally speaking, it's better to risk less than more.
This risk factor may seem low, but you need to be aware that losses can occur at any time and you must be able to cope with them without causing serious damage to your capital.
For example, if your trading method yields a 50% win/50% loss (which is mediocre, as your wins must, on average, outweigh your losses to give you that much-needed edge), then statistically speaking, you're likely to experience 11 or more consecutive losses in every 1,000 trades. Unless you're well-versed in statistics, no one would suspect such a high number of losing streaks. And if you're risking 10% per trade, you're probably going to be wiped out.
Also, keep in mind that if you halve your account, you'll have to double it (achieve a 100% profit) to get back to your starting account. This isn't easy to achieve, so it's best to avoid halving your account in the first place. By risking 2%-4% each time (adjusting your risk based on your overall bankroll), you can minimize the impact of inevitable losses and still capitalize on those 11-game winning streak (statistically possible, but certainly not excessive).
Therefore, trading psychology will once again be introduced into your risk management. If you are the type of person who is willing to take high risks and enjoy the excitement, you must pay special attention to yourself and do not ignore the advice I gave above because of these psychological tendencies.
Money can raise a number of psychological issues, but the reality is that if you want to make your trading a business, you must manage these issues properly. Being an emotional, poor loser in a competitive environment can negatively impact your ability to handle the financial losses you will inevitably experience in the trading process. As you consistently treat trading as a business, profits will naturally follow.
Step#5to Successful Trading: Internalize Profitable Trading Methods into Habits
As humans, most of our behaviors are just habits. Some of us develop profitable habits and become wealthy and successful, while most of us, for various reasons, develop habits that lead to failure and make life a struggle.
For such situations, a lot may need to be done to properly address the human herd mentality: you only need to go to your local pub, football stadium or rock concert to see how much we humans like to be sociable.
Successful people are often those who enjoy working independently and independently. They also possess a highly positive mindset towards success. They view success, wealth, and successful people as worthy goals or inspiring role models.
If you want to profit, you must avoid that behavior and, ideally, adopt the steps outlined in this article. These steps are inherently simple. If you follow them consistently, they will become powerful, success-leading habits (the opposite of the destructive habits most traders develop).
We're all prone to falling into bad habits, and those habits need to be eradicated. This is easier said than done. Take me for example. In November 2012, I decided I was drinking too much, so I decided to quit drinking for a year. I found it easy to do and considered myself a successful self-directed effort. A year without alcohol wasn't a big deal, after all. But I worried that if I started drinking again in November 2013, I'd immediately relapse. However, I was pleasantly surprised to find that I could manage my drinking quite comfortably. I'm not saying bad habits won't relapse, but for me now, I've eliminated old bad habits and am happy to maintain new ones.
Remember, a habit is formed by repeating the same behavior over and over again. Unfortunately, your subconscious mind doesn't know or care whether a habit you're developing is good or bad. When it comes to your trading, you need to identify which bad habits you've developed and find ways to eliminate them. This is still easier said than done. Remember: many of our habits play a positive role in our daily lives, so most of them are extremely useful!
Unfortunately, in many cases, our habits are subtly undermining our own efforts to succeed. When we set out to achieve peak performance in a certain area, we all need to change our less helpful habits in order to succeed.
Step 6 to Successful Trading: Develop Your Self-Control
Finally, I'd like to add one more thing I call the sixth cornerstone: self-control. You cannot be a successful professional trader unless you decide what you want and take action.
Of course, there's more to it than just these things as you actively grow your bankroll and learn to navigate new challenges at each stage. Your unique relationship with money may be a key factor in this process.
The six-step method outlined above can be well applied to all aspects of trading or life if appropriately modified according to actual needs.
Many people trade contracts, but when asked, "Should I use full margin or isolated margin?" many are completely bewildered. Worse still, some don't even understand the difference between the two, yet still venture into leveraged positions. Eventually, their positions go bankrupt, leaving them bewildered and unaware of the problem.
Today, without getting bogged down in technical terms, I’ll explain these two models clearly. After reading this, you’ll have a better idea of which model to choose.
Let’s talk about position-by-position first:
Simply put, position-by-position means "how much you invest, the maximum you lose."
For example, if you have 5,000U in your account, and you only invest 500U in this order, then even if the market goes completely the other way, you will only lose 500U at most, and the entire account will not be affected.
Who is it suitable for? Suitable for those who want to control risks and prefer a steady and cautious approach.
Each order is like an independent battle. Even if the battle is not fought well, it will not affect the overall situation and the safety of the principal can be maintained.
Let’s look at the full position:
The logic behind full-position trading is that if this order fails, the remaining money in the account will be "buried" with it.
The system will automatically use the remaining funds in the account to "extend the life" of the current position until the entire account can no longer bear it and is cleared out at once.
It sounds like a "high tolerance for error", but the risk is actually greater.
Many people think they can hold their own when using full positions, but when a major market fluctuation occurs, they often lose everything. This is especially true for those who prefer to hold their positions without setting stop-loss orders. For them, full positions are essentially a ticking time bomb.
So how to choose?
If you are still familiar with the market or are new to contracts, it is best to choose isolated position trading - this is the most direct way to protect your capital.
Once you have a mature trading system and can strictly implement risk control, you can consider using full position to improve capital efficiency. However, even then, stop-loss orders must be set carefully and not be careless.
Ultimately, the essence of a contract is not to make quick money, but to allow you to stay in the market longer and more steadily.
Don’t treat your account as a casino. Placing big bets without even knowing where the risks come from is not called trading, it’s called gambling on luck.
Full-position and position-by-position, neither is more advanced, it just depends on whether you have the ability to control it.
In this market, whether you can maintain your recovery and seize opportunities depends on yourself. Only by clarifying your thinking and making a good layout early can you get out of the trough faster.
There is a saying that I strongly agree with: the boundaries of knowledge determine the boundaries of wealth, and people can only earn wealth within the boundaries of their knowledge.
You must have a good mentality when trading cryptocurrencies. Don't let your blood pressure soar when there is a big drop, and don't get carried away when there is a big rise. It is more important to lock in your profits.
For people who don’t have many resources, being down-to-earth is the irrefutable way of survival.
Giving roses to others leaves a lingering fragrance on your hands. Thank you for your likes, attention, and reposts! I wish you all financial freedom in 2025!
A single tree cannot make a boat, and a single sail cannot sail far! In Erquan, if you don’t have a good circle and first-hand information about the cryptocurrency circle, then I suggest you follow Lao Wang, who will help you get ashore for free. Welcome to join the team!!!
