Six Survival Tips for Contract Trading Beginners:

1. Always use 'isolated margin' trading, never use 'cross margin'

The benefit of isolated margin is that it limits risk to a single position; even if you make a wrong judgment, you will only lose the money from that trade. I've seen many people experience significant losses just because they 'accidentally' forgot to set a stop-loss once while using cross margin.

Remember: position isolation is the first line of defense for a longer survival.

2. Do not hold onto losing positions, do not hold onto losing positions, do not hold onto losing positions (important things are said three times)

This is the pitfall that newcomers are most likely to fall into, and it carries the highest cost.

Humans instinctively dislike losses, so when facing unrealized losses, most people choose to 'hold on' and wait for the market to reverse. But please remember:

The worst that can happen in spot trading is zero, but in contract trading, you can continuously bleed money.

Many friends start from 'not wanting to admit defeat' and ultimately turn a mistake into a disaster. A small wound can eventually become a fatal injury.

3. Control your 'tuition fee limit' and be prepared to lose everything

Most newcomers enter the contract market with the mindset of 'I want to make money'. But the reality is: you may win a few times at the start, only to face a significant drawdown that wipes out all your earnings or even your principal.

Before achieving stable profits, all the principal you brought may become tuition fees, and the verification period for stable profits can take several years. Be mentally prepared for this.

4. Reduce your leverage

Many exchanges now offer leverage of 100x or even 200x, which seems very exciting, but for newcomers, it's 'poison'. The higher the leverage, the lower the tolerance for error; with just a slight market fluctuation, you could get liquidated.

For altcoins, newcomers should not exceed 5x leverage, and for mainstream coins/bigger positions, it’s advisable to keep it within 3x.

True experts pursue winning rates and long-term stability, not rapid wealth from one trade.

5. Establish your own 'trading discipline' when your mindset is calm

Many people completely lose control during volatile market swings, frequently adjusting their leverage, changing stop-losses, and chasing positions to add to their losses, resulting in a mess. The contract market is not about who is smarter, but about who can control themselves.

You must establish rules when calm and follow them when emotions run high.

6. Find traders worth learning from and watch their reviews

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