If you are still continuously losing in contract trading, even doubting “contracts are bound to lose”, then this article, which condenses practical experience on trading discipline, will help you rebuild your logic for profitability. Following these 6 key principles can at least improve your win rate by over 50%, but remember: trading is a counterintuitive practice, and the unity of knowledge and action is key.

I. Life and death line rule: 3-second decision mechanism for take profit and stop loss

Take profit logic:


  • Cycle determination: short-term (1 hour) target 5%-10%, medium-term (4 hours) 15%-20%, decisively close positions upon reaching preset levels, without being greedy for “tail end trends”.

  • Case: When ETH rises from 1800 to 2000, preset a 20% take profit level (2160), if it breaks through, keep 10% of the position to aim for a higher point, if it falls below 2000, close all positions.


Stop loss iron rule:

  • Mechanical execution: single loss ≤ account funds 2% (e.g., 1000U principal, stop loss ≤ 20U), use the “2% rule” to equip the account with a “fuse”.

  • Psychological construction: stop loss is not “accepting loss”, but using a small cost to exchange for “the qualification to survive in the market”. There was a student who held onto a position leading to liquidation, ultimately recovering with 20 correct trades, a painful cost.

II. Frequency curse: Why is it said that “doing less = earning more”?

  • Transaction fees devour profits:

    • High leverage (e.g., 100x) incurs a loss of 1%-2% per trade, and if the win rate is below 60%, transaction fees will become an “invisible killer”.

    • Data: Users who trade 500 times a month have an average transaction fee that accounts for 24% of their principal, meaning they need to earn an additional 24% each month just to break even.

  • Trading misconceptions:

    • Give up the “bet on both sides” mentality and focus on a single trend (e.g., only going long in a bullish market), increasing the win rate from 40% to above 65%.

III. Empty position philosophy: when you don’t understand the market, staying out is the best strategy.

  • Decision model:

    • When the price is in a range (e.g., BTC consolidating between 28,000 - 32,000), and the RSI indicator shows no significant divergence, choose to wait and see.

    • Motto: “Do not trade in ranges, chase after breakthroughs”, to avoid consuming principal in ineffective fluctuations.

  • Psychological resistance:

    • Opportunity loss is 0, losing loss is 100%. There was a student who frequently opened positions during a consolidation period, losing 30% in 5 days, while those who waited for a breakthrough to enter made 20%.

IV. The art of position: the correct path from small trial and error to compound growth

  • Ladder building method:
    ① First position 10% trial (e.g., 1000U principal, first position 100U), set stop loss at 2% (loss 20U);
    ② After making a profit, use 50% of the profit to add to the position (e.g., earn 100U, add 50U), achieving “profit rolling over”;
    ③ Total position not exceeding 30%, to avoid excessive volatility of a single cryptocurrency.

  • Profit comparison:

    • Aggressive: All-in, single trade earns 50% but may lead to liquidation;

    • Stable: Build in 3 phases, single trade earns 20%, after 3 phases of compounding, profit is 72.8%, risk reduced by 80%.

V. Risk control bottom line: what happened to those who heavily invested?

  • Real case:

    • An investor heavily invested 5000U to long LUNA, did not set a stop loss, and due to UST decoupling, it plummeted 99%, resulting in instant liquidation;

    • Another trader used 10% of their position to long BTC, adding 5% to their position every 10% increase, achieving a 150% profit after 3 additions while keeping the drawdown within 5%.

  • Position formula:
    Maximum position = (account funds × 2%) ÷ (stop loss margin × leverage multiplier)
    Example: 1000U principal, stop loss 5%, 10x leverage, maximum position = (1000 × 2%) ÷ (5% × 10) = 40U (using only 4% of the position).

VI. Unity of knowledge and action: 3 keys from “knowing” to “doing”

  1. Trading plan visualization:

    • Before opening a position, clearly write down the “entry reason, stop loss level, take profit target” to avoid emotional trading.

    • Case: Use “breakthrough of support level + increased trading volume” as an entry signal, never open a position unless conditions are met.

  2. Review mechanism:

    • Record after daily close: “Did today’s trading conform to the plan? Is the reason for the losing trade a discipline issue or a judgment error?”

    • Data: Traders who persist in reviewing their trades increase their win rate by 37% within 3 months and reduce drawdown by 52%.

  3. Counterintuitive training:

    • Remind yourself to “take profit when in the green” when making money, and silently remind yourself “stop loss is for the next battle” when losing.

    • Tool assistance: Use “conditional orders” to preset take profit and stop loss, avoiding hesitation in manual operations.

Conclusion: Contracts are not a casino, but a game of probability and discipline.

There is a saying in the crypto circle that “99% of people lose money”, but the truth is: 99% of people play contracts with a casino mentality — all in, frequent trading, holding positions without stop loss. If you can do:


  • Use the 2% rule to control single trade risk;

  • Only engage in high probability trends;

  • Gamble with profits, not principal;
    Then you will surpass 90% of traders and become one of the few profitable ones.


Contracts are amplifiers, allowing correct strategies to quickly accumulate wealth but can also cause incorrect operations to instantaneously go to zero. Do not invest real funds without at least 3 months of simulated trading training. The ultimate secret of trading is always that “surviving” is more important than “making quick money”.

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