If you are in a losing position with contracts, you need to read this article carefully. Please strictly follow the points below.

Ensure you can achieve profitability.

A three-year veteran's sharing of insights, the following points are all very important.

1. Learn to take profits and cut losses.

This point has been mentioned many times. The market changes rapidly, and you must learn this. It's not difficult to say; profit-taking controls your greed. A cryptocurrency will not rise endlessly, nor will it continuously fall; there are cycles. Therefore, profit-taking becomes particularly important. Don't say you closed positions too early and missed out on later profits. Remember, the money in the crypto space is never-ending, but the money in your account can run out.

Setting a stop-loss means abandoning sunk costs. This is also very difficult. Don't think that if you hold on to a position, it will reverse. If you're wrong, you're wrong; you must admit it. Taking hits while standing firm might hurt, but it can save your life.

Just to mention again, when opening a position, ensure you have enough margin for error. The direction might be correct, but if your volatility tolerance is too low, you can easily get thrown off.

2. Do not trade frequently.

A major taboo: are you always thinking about making money on both sides? Wake up! Very few people can do that. Being able to profit from one side is already satisfactory. Another point is the trading fees; lower leverage is manageable, but high leverage can be painful. As soon as you open a position, you lose 1-2 points of profit. You must ensure this trade can make money; otherwise, opening it is meaningless.

3. Learn to stay out of the market.

When you don't understand the market, don't open a position. You might say it's frustrating to miss a market trend. But let me ask you: is it more painful to miss out or to incur losses? Opening a position without understanding the market is no different from gambling.

Trading is about having a probability advantage. No one can accurately predict whether it will rise or fall; the market changes too quickly. You can only say it is more likely to go up or down.

By the way, the top two exchanges now have copy trading sections. If you lack confidence in opening trades and often misjudge the direction, you might want to check out the copy trading area. Choosing the right trader is also very important.

4. Gradual progress.

Don't think you can become rich overnight; this is a gradual process.

The crypto space won't make you rich overnight. For example, if you use 100 as your capital, open a long position with 10x leverage, your position is 1000. If it rises by one point, you earn 10 dollars; if it rises by two points, you get 20 dollars. That's enough for a breakfast. Nowadays, working in a factory only pays 15 dollars an hour, so making three to four trades a day with a win rate of 60-70% is much more comfortable than working in a factory.

5. Never go all in with high leverage.

Don't use high leverage; unexpected events can wipe you out. It might rise as expected, but one sudden heavy news can reverse everything, and if you haven't set a stop-loss, then it's game over.

Stay rational and never get overly excited, especially after a liquidation. (This is the consequence of not setting stop-losses; liquidation leads to a series of chain reactions, making stop-losses particularly important.)

At this moment, you really want to recoup your losses. You must remain rational and keep your head clear. If you fear losing control, you can open the contract cooling period.

Don't think that opening a contract cooling period means you just missed this wave of market movements. The crypto space is not lacking in market trends and opportunities; they have always been present and will at least continue for the next 10 to 20 years.

6. Be sure to know and act in unison.

This point is indeed quite difficult, and even I sometimes cannot fully achieve it. Human weaknesses are hard to control.

I will update with other points if I think of them later.

I used to be a novice too; I didn't understand these basic issues. I opened positions randomly, without a plan. After being in the game for a long time, I realized that the crypto space can truly change your fate.

If you come across this article, I hope it can help you a little bit #币安HODLer空投ERA $BTC .