1｜Why do so many people get attracted to contract trading?
Because it has high leverage, fast returns, and short cycles,
But precisely because of this, it is a double-edged sword.
It's not about making money quickly, but losing it even faster.
If you don't understand risk management, contracts are not opportunities, they are traps.
2｜What is risk management? In one sentence:
It's not about avoiding risks, but trading within an acceptable range.
In the world of contracts, there is always a story of overnight wealth.
But those who survive long-term are only those who know how to control drawdowns.
3｜The four key points of risk management core:
① Control single trade risk:
Don't use all your funds to 'go all in'.
A single loss should ideally not exceed 3%-5% of your account.
② Stop-loss + take-profit must be in place:
Dynamic profit-taking allows profits to run.
Static stop-loss helps you stay alive.
③ Risk-reward ratio + win rate must be well matched:
The risk-reward ratio should be at least 1:1.
The win rate should ideally be above 50%, don't rely on luck to support the system.
④ Before trading, ask yourself:
For this trade today, even if I lose, is my mindset still stable?
4｜Those moments when contracts are liquidated are not due to a toxic market, but because you have no plan.
Real traders never make decisions based on feelings.
It's about having a complete plan and being able to implement decisive stop-losses.
Even when the market is stagnant, there are still funding fees burning away.
Greed and fear are both hidden in systems without risk control.
5｜Conclusion
Contracts are financial instruments, not a gateway to gambling.
Controlling risk is not being conservative, but rather professional ethics.
Both Bitcoin and altcoins are in a volatile market.
Those who truly want to see longevity in the crypto space,
The first lesson you need to learn is how not to die.#加密市场回调 #ENA #PEPE #SOL #SUI $BTC $XRP $SOL
