In the cryptocurrency world, contract trading attracts numerous players due to its high leverage and high returns, but its high risk also makes many people fail. As a contract player who has been struggling for several years, I have summarized some practical experience, hoping to help novices avoid detours and win steadily.

1. Control your positions and avoid going all-in

The core of contract trading is risk management. Leverage can magnify profits, but it can also magnify losses. My experience is that a single position should be controlled at 10%-20% of the account funds, and the leverage multiple should not exceed 5 times. During the BTC volatility in April 2025, I opened a long position at $92,000, with 2x leverage and a position of 15%. When the price fell back to $90,000, the floating loss was controllable, and it finally rebounded to $94,000 and exited with a profit. On the contrary, a friend once chased high with a full position of 10x leverage, and the position was liquidated when the price fell back slightly, and he lost all his money.

2. Set up stop-profit and stop-loss, and don’t let emotions dominate the transaction

Human nature is the biggest enemy of contract trading. Greed and fear often make people miss opportunities. My habit is to set a stop loss and take profit for each transaction. When BTC fluctuates greatly, the stop loss is set at the key support level (such as the lower track of the 4-hour Bollinger band), and the take profit target is a 1:2 or 1:3 profit-loss ratio. For example, on April 28, Ethereum was shorted at $1,800, with a stop loss of $1,830 and a take profit of $1,750. I accurately caught a wave of callbacks and doubled my income.

3. Follow the trend and go with the flow

Biquan contracts should not be operated against the trend. Technical analysis is my "weapon", and I often use 4-hour K-line combined with MACD and RSI to judge the trend. In mid-April, the BTC daily bottom divergence signal was confirmed. I opened a long position with low leverage at $88,000. The trend was clear. A few days later, it rose to $92,000 and made a profit easily. The counterexample is that I bought a certain altcoin against the trend last year. The trend was unclear. I realized that "trend is king" after the position was liquidated.

4. Choose the right platform and pay attention to fund security

The choice of platform directly affects the trading experience. I prefer top platforms with low fees and good depth, such as BN or OKX. At the same time, I ensure that the funds are stored in cold wallets and check the account security regularly. The incident of a small platform running away in 2024 made me thankful for the importance of choosing a regular platform.

5. Mindset first, stay away from emotional trading

Contract trading is a psychological warfare. In the early days, I was mentally broken by continuous losses, and frequently added positions to "recover the investment", but I got deeper and deeper into trouble. Later, I learned to review after each transaction, take a day off when I lost money, and not rush to follow up after a profit. Calmly review, mentality determines success or failure.

Summarize

Biquan contract trading is like dancing on the edge of a knife. Controlling positions, strictly taking profit and stop loss, following the trend, choosing a good platform, and maintaining a good attitude are the keys to success. Before entering the market, it is recommended that novices practice with a simulated trading platform first, and then trade with a small amount of real money after becoming familiar with the rules. Remember, staying alive is more important than making a lot of money!