Key Takeaways from the Book

1. Mastering Trends: Going with the Flow is the Way to Success

One of the biggest advantages of contract trading is the ability to go long or short, flexibly responding to market fluctuations. However, before that, you must learn to judge market trends. How to accurately assess changes in trends? Technical analysis is your best weapon. Common indicators such as candlestick charts, MACD, and RSI can help you capture market movement signals.

• Long Strategy: If the market is in an upward trend, you should boldly go long.

• Short Strategy: If the market is in a downward trend, you can choose to short and profit from the market's decline.

The key is not to blindly follow the trend, but to use technical analysis and market data to make rational decisions.

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2. Risk Management: Set Stop Loss and Take Profit to Avoid Emotional Trading

The biggest risk in contract trading comes from leverage; a moment of inattention can lead to liquidation risk. To avoid this situation, you must learn strict stop loss and take profit strategies. Whether bullish or bearish, you should set stop loss and take profit points before entering the market.

• Stop Loss: If the market trend does not meet your expectations, stop loss can help you control losses and avoid significant declines.

• Take Profit: With extreme market fluctuations, take profit can help you lock in profits before the market reverses.

Risk control is the core of maintaining stable profits; you should never ignore this due to emotions or impulses.

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3. Emotion Control: Stay Calm and Avoid Greed

The volatility in the cryptocurrency space is very intense, often causing traders to experience emotional fluctuations. How to stay calm in a fierce market is the key to your continued profitability. Avoid overtrading due to greed, and do not miss opportunities out of fear.

• Avoid Overtrading: Market opportunities are endless, but not every fluctuation is worth your participation.

• Create a Trading Plan: Plan your goals for each trade in advance and do not blindly follow market sentiment.

Remember, contract trading is not just a technical game, but also a psychological battle. Staying calm and following your own plan is the true key to long-term success.