4 Contract Trading Tips for Guaranteed Profits, Easy for Beginners!

1⃣ Choose the Right Contract Type to Reduce Risk

- USDT-Margined Contracts: Suitable for beginners, low volatility, controllable risk.

- Coin-Margined Contracts (BTC/ETH): Suitable for long-term holders, but cryptocurrency prices are highly volatile, risking liquidation.

- Perpetual Contracts vs Futures Contracts: Perpetual contracts have no expiration date, suitable for short-term; futures contracts have a fixed settlement date, suitable for arbitrage.

Beginners are advised to start with low leverage (5-10x) on USDT-margined contracts to avoid liquidation from high leverage!

2⃣ Learn Technical Analysis to Identify Buy and Sell Points

- Candlestick Patterns: Such as 'Head and Shoulders' and 'Double Bottom', to predict trend reversals.

- Moving Average System: Combine 5-day, 20-day, and 60-day moving averages to determine support/resistance levels.

- MACD/RSI Indicators: Assist in identifying overbought and oversold conditions to avoid chasing highs and lows.

3⃣ Strictly Implement Stop Losses to Avoid Liquidation

- Fixed Stop Loss: Individual losses should not exceed 2% of the principal.

- Trailing Take Profit: Gradually raise the stop-loss level after reaching profit targets to lock in profits.

- Do Not Hold Losing Positions: Cut losses in a timely manner, do not fantasize about breaking even, as this can easily lead to liquidation.

I once lost 50% on a single trade due to not stopping losses, now I strictly follow discipline!

4⃣ Control Leverage, Avoid Greed

- Beginners are advised to use 5-10x leverage, while experienced traders may try 20-50x, but 100x leverage carries extremely high risk.

- The higher the leverage, the greater the chance of liquidation; with 100x leverage, only a 1% adverse movement can lead to liquidation.

- Withdraw part of the profits after gaining to avoid profit retracement.