Explanation of the Rationality of Six Major Suggestions

1. Learn to Take Profits and Cut Losses — The Basic Risk Control Logic of Trading

2. Rationality: The logic of profit-taking to control greed and stop-loss to abandon sunk costs is correct. The market has cyclical fluctuations, and setting reasonable profit-taking and stop-loss levels can avoid 'small gains and large losses,' such as through technical support and resistance levels (like moving averages, Bollinger Bands) or psychological price levels.

Note: The claim of '100% guaranteed profit' is not rigorous. Profit-taking and stop-loss are means to reduce risk but cannot completely avoid sudden market fluctuations (like black swan events), and should be combined with position management.

2. Do Not Trade Frequently — Reduce Costs and Emotional Disruption

Rationality: High leverage contract fees are significant (e.g., opening a position can incur a loss of 1-2%), and frequent trading can easily trap traders in the 'earning fees' pitfall; at the same time, frequent operations can be driven by emotions, reducing decision rationality.

Supplementary Suggestions: Set a 'daily trading limit' (e.g., 3 times), or only operate when clear signals (like trend breaks, divergences) appear.

3. Learn to Be in Cash — A 'Defensive Strategy' When You Don't Understand the Market

Rationality: Being in cash is a reflection of 'probability thinking.' The essence of trading is to wait for high win-rate opportunities, rather than 'not missing any market movements.' The risk of missing out is far lower than the loss risk of blindly opening positions.

Extension Techniques: When in cash, you can review historical trades or study market fundamentals (like policies, project dynamics) to prepare for the next opening.

4. Gradual Progression — Small Capital Trial and Error, Accumulating Experience

Rationality: Small capital (e.g., 100 principal + 10x leverage) can reduce trial and error costs, building trading confidence through 'small position strategy verification,' avoiding psychological impacts from large losses.

Data Comparison: Assuming 100 principal opens 10x leverage, a 1% fluctuation results in a profit/loss of 10; if the principal is 1000, a 1% fluctuation results in a profit/loss of 100, where the latter brings greater psychological pressure, leading to operational distortions.

5. Never Go All-In — The Core Principle of Risk Management

Rationality: Heavy positions can easily lead to liquidation from short-term fluctuations (like a sudden market downturn + no stop-loss set), while light positions (e.g., position proportion ≤10%) can reserve space for averaging down or coping with volatility.

Example: With a principal of 10,000, a 50% position opening a 10x leverage is equivalent to holding a position of 50,000. A 2% price reversal results in a loss of 1,000 (10% of the principal); if the position is 10%, a 2% reversal only results in a loss of 200.

6. Unity of Knowledge and Action — Trading Discipline and Psychological Management

Rationality: Human weaknesses (greed, fear) are significant reasons for trading losses. For example, 'holding onto positions' essentially reflects an unwillingness to admit mistakes, which needs to be overcome through discipline (like mandatory stop-loss).

Improvement Method: Develop a trading plan (preset opening points, profit-taking, stop-loss, position) and strictly implement it to avoid ad-hoc decisions during trading.

2. Supplementary Key Points of Contract Trading (Not Mentioned in the Original Text)

Dimension Core Content

1. Technical and Fundamental Analysis - Technical Analysis: Learn candlestick patterns (like engulfing, doji) and trend indicators (MACD, RSI) to determine entry timing.

- Fundamentals: Focus on project market value, circulation, and policy dynamics (like regulatory news impacting the market).

2. Leverage Selection Strategy - High leverage (100x +) is suitable for short-term quick entry and exit, requiring strict stop-loss; low leverage (10-20x) is suitable for trend trading, with a higher margin for error.

3. Capital Management Formula - Single loss ≤ 2% of principal (e.g., for a principal of 10,000, single loss ≤200), to avoid consecutive losses leading to significant principal shrinkage.

4. Emotional Regulation Techniques - Pause trading after losses, review problems; do not overinflate after profits, take profits as planned. Stress from trading can be relieved through meditation, exercise, etc.

3. Important Risk Warning: Contract trading is a high-risk speculative behavior. Even strict adherence to strategies cannot completely avoid losses. Historical data shows that over 90% of contract traders ultimately exit at a loss. The claim of '100% profit' does not align with market principles. It is recommended that beginners first understand the market before trying small position contracts, and be sure to clarify: There are opportunities in the crypto space, but once the principal is lost, there is no chance of recovery.

Summarizing the underlying logic of the six major suggestions (risk control, discipline, mindset) is correct and serves as a foundational framework for newcomers, but it needs to be combined with specific analytical methods and capital management tools. The essence of trading is a 'game of probability,' with the core goal being to ensure that the probability and magnitude of profits are greater than losses, rather than pursuing 'guaranteed profits.' Rationally addressing risks is essential for long-term survival in the market.