In the cryptocurrency world, if you want to make 12 million from 10000, there is only one way: if you want to be quick, that is to roll over your positions. The most risky method should also be divided into three times. In other words, you should at least give yourself three chances. For example, if the total account fund is 200,000, the customer allows you to lose a maximum of 20%, which is 40,000. Then, the most adventurous loss plan I suggest is: the first time 10,000, the second time 10,000, the third time 20,000. I believe this kind of loss plan still has a certain rationality. Because if you do it right once in three tries, you can profit or say you can continue to survive in the market. Not being kicked out of the market itself is a kind of success, which gives you a chance to win.

2. Grasp the overall market trend. The trend is much harder to deal with than fluctuations because trends are about chasing highs and cutting losses. You need to have the resolve to hold positions, while buying high and selling low aligns more with human nature. Trading is such that the more it conforms to human nature, the less money you make; it is precisely because it is difficult that it is profitable. In an upward trend, every violent pullback should choose to go long. Do you remember what I said about probability? Therefore, if you are not in the market or have exited, patiently wait for a drop of 10-20% and be bold.

3. Set profit-taking and stop-loss targets. Profit-taking and stop-loss can be said to be the key to determining whether you can profit. In several trades, we need to ensure that total profit exceeds total loss. Achieving this is actually not difficult; just do the following: ① Each stop-loss ≤ 5% of total funds; ② Each profit > 5% of total funds; ③ Total trading win rate > 50%. If the above requirements are met (profit-loss ratio greater than 1 and win rate greater than 50%), profit can be achieved. Of course, you can also have a high profit-loss ratio with a low win rate or a low profit-loss ratio with a high win rate. Anyway, as long as the total profit is positive, it’s fine. Total profit = initial capital × (average profit × win rate - average loss × loss rate).

4. Remember not to trade too frequently. Since BTC perpetual contracts are traded 24/7, many beginners operate daily, and with 22 trading days in a month, they almost trade every day. As the saying goes: Those who walk along the river often get their shoes wet. The more you operate, the more likely you are to make mistakes. After a mistake, your mindset will change, and once your mindset changes, you may act on impulse, choosing 'revenge' trading: possibly going against the trend or heavily investing. This will lead to one mistake after another, easily causing huge losses on the account, and these losses may take years to recover.