300 Dollar Principal Million Asset Trading Record: 9 Survival Rules from a Contract Veteran. In this ever-changing battlefield of the cryptocurrency market, some fail while others ride the waves. Today, as a veteran who has been struggling in the contract market for many years, starting with a capital of 300 dollars and successfully achieving a million assets, I want to share the practical strategies that can truly help you survive in contract trading and realize wealth reversal. These strategies are known to only 1% of people; mastering them could make you the next person to change your financial fate!
Total Capital Planning: Never invest all your wealth in contracts. When I initially set 300 dollars as my starting capital, it was after assessing my overall financial situation. I took out a sum that would not affect my life even if I lost it all. This 300 dollars is my 'contract battlefield fund', specifically for that purpose, and I will never use other living or savings funds to fill in the gaps in contracts, ensuring that in any extreme situation, my life does not suffer a devastating blow.
Position Control: The initial position should be as light as a feather. I generally use 5% - 10% of the total funds as the first order position. For example, with a capital of 300 dollars, I would only invest 15 - 30 dollars in the first order. This way, even if I make a wrong judgment, the loss is within a bearable range, and I still have enough funds to adjust my strategy later on. As profits increase, I won't blindly increase my position, and I will keep the proportion of my holdings to total funds in a reasonable range, such as not exceeding 30% in a one-sided market, to avoid losing everything due to a single mistake.
2. Timing the Trade: The code for entering against the trend.
Technical Indicator Resonance: Don’t rely on a single indicator, but rather judge entry timing through multiple indicators. I often use the 4-hour Bollinger Bands, RSI indicator, and MACD indicator together. When the 4-hour Bollinger Bands are narrowing, it indicates that the market is about to choose a direction; if the RSI shows oversold or overbought weakening; and simultaneously, the MACD shows a golden cross (when going long) or a death cross (when going short), the reliability of the entry signal greatly increases. For example, during a recent Bitcoin downtrend, as the Bollinger Bands narrowed, the RSI fell below 30 and weakened at a low level, and the MACD formed a death cross, this was an excellent shorting opportunity.
Combining News and Technical Analysis: Pay attention to major industry news but don't blindly follow the trend. When significant positive or negative news is released, first observe the market reaction to see if the price trend aligns with the news. If the news is positive but the price doesn't rise significantly, or even falls, it’s likely that the market has already digested the news or it’s a bull trap. The same goes for negative news. Only when the news aligns with technical trends should you enter decisively. For instance, before the Bitcoin ETF approval news, the technical analysis had already shown a bullish trend; after the news was released, go long with high profit probability.
3. Unique Position Increasing Strategy: A more ruthless compounding secret than all-in.
Profitable Position Increase: Never use principal to increase positions, only increase based on profits. When the first order profit reaches a certain percentage, such as 20% - 30%, and the market trend still aligns with expectations, use 20% - 30% of the profit portion to increase the position. For example, if 30 dollars were invested in the first order and the profit rises to 36 dollars, use 1 - 2 dollars from the 6 dollars profit to increase the position. This way, even if the market reverses later and the increased position incurs losses, it won't hurt the principal and ensures overall profitability.
Pyramid Position Increase: The amount of position increase gradually decreases with profits. Use 30% of profits for the first increase, 20% for the second, and 10% for the third. This effectively controls risk and prevents heavy losses at the end of the market. For example, if the initial position earns and the first increase is 10 dollars, the second increase is 6 dollars, and the third is 3 dollars, the risk increases as you go, while the invested amount decreases, ensuring that while securing profits, one mistake won't lead to total failure.
4. Stop-Loss and Take-Profit Discipline: The key to survival and profit locking.
Stop-Loss Rule: Set strict stop-loss levels, with the maximum loss never exceeding 15% of total funds. Once the stop-loss level is reached, close the position unconditionally. For example, with a capital of 300 dollars, if the loss reaches 45 dollars, you must decisively exit without harboring any illusions. The stop-loss level can be set according to technical indicators, such as support and resistance levels, or fixed percentages. I generally set the stop-loss slightly below key support levels when going long, and slightly above key resistance levels when going short.
Take-Profit Strategy: When profits reach a certain target, first lock in part of the profits. For example, when profits are at 50%, take profit on half the position, securing both the principal and part of the profits. For the remaining position, set a trailing stop, such as closing the entire position when the price falls below the 5-minute EMA (exponential moving average). This ensures certain profits while not missing out on further profits if the market continues to evolve.
5. Mindset Cultivation: Maintain balance between greed and fear.
Overcoming Greed: Do not pursue selling at the highest point or buying at the lowest point. In contract trading, this is unrealistic. When profits reach the expected target, take profit decisively; don’t miss the best exit opportunity just because you want to earn a little more. For instance, if you originally planned to take profit at 50% and reached that target, even if the price continues to rise, you should firmly execute the take-profit strategy to avoid giving back profits due to greed.
Overcoming Fear: When the market goes against your judgment, do not panic sell. If it is within a reasonable stop-loss range and your judgment logic hasn’t changed, you can hold on appropriately. However, if the stop-loss level is triggered, bravely stop loss without fearing the loss. At the same time, when new entry opportunities arise, do not hesitate because of previous losses; trust your trading strategy and enter decisively.
6. Review and Summary: Continuously optimize the trading system.
Daily Review: After each trading day, review all the trades of the day. Analyze the reasons for entering each trade, whether the exit timing was reasonable, and what caused the profits and losses. Record these analyses to form a trading log. Through reviews, summarize experiences and lessons, continuously optimizing your trading strategy.
Regular Summary: Conduct a comprehensive summary every week and month. Compare trading data from different periods to see which strategies performed well and which need adjustment. For example, if you find that the win rate for entering based on specific technical indicators is high during a certain period, you can increase your research and application of that indicator; if a certain position increasing strategy frequently leads to losses, adjust it in time. Through regular summaries, improve your trading system and continuously enhance profitability.
Master these survival rules of contract trading and implement them strictly; even starting from a capital of 300 dollars, you could achieve a million assets in the contract market! But remember, contract trading is highly risky; when applying these strategies, operate cautiously and adjust according to your risk tolerance.