1. First learn to survive, then talk about making money
- Position is vital: Use no more than 2%-5% of your capital for a single trade. A liquidation is not scary; over-leveraging is a sure way to fail.
- Stop-loss is instinct: Just like wearing a seatbelt while driving, if you don’t have this habit, you’ll be out on the first sharp turn. Don’t believe that "holding a position will let you break even"; the market is ruthless to dreamers.
2. Understanding the human traps after learning about candlesticks
- Don’t believe in get-rich-quick myths: Screenshots of 10,000x contracts from exchanges are just like luxury cars parked outside casinos — they’re bait.
- Beware of "collective signals": When all the big influencers are promoting the same coin, it’s likely they’re preparing to cash out; retail investors are just picking up the tab.
3. Contracts are about probability, not betting amounts
- Risk-to-reward ratio > win rate: Making big profits on 3 out of 10 trades and small losses on 7 is much better than making small profits on 10 trades and blowing up on 1.
- Don’t argue with the trend: Don’t short just because you think prices are high during a bullish trend, and don’t buy the dip just because prices have fallen too much during a bearish trend. The market doesn’t follow reasoning, only trends.
4. Technical indicators are tools, not commandments
- Moving averages and MACD are signposts: No one gets rich off these lines, but they can help you understand market sentiment.
- Don’t blindly trust support levels: When all retail investors are focusing on the same point to buy the dip, institutions will definitely break through to show you.
5. The dark truth of the contract market
- Your opponents are not just people: AI robots can execute your stop-loss orders in 0.1 seconds, and "spike" by exchanges is a common practice.
- Only trade mainstream coins: The slippage on small coins can ruin you; mainstream coins are the safe zone for beginners.
6. If you can’t maintain the right mindset, no amount of skill will help
- Don’t stare at the screen too much: Those who check every hour will eventually be driven crazy by volatility, becoming puppets of their emotions.
- Keep a "death note": You need to review every liquidation — Was it a technical error? Did emotions explode? Or was it a black swan event? Those who survive are the ones who crawl out from their blood and tears.
Lastly, let’s face a harsh truth: In the crypto contract market, 90% of the profits come from 5% of the trades, and the vast majority of people fail while searching for that 5%. Survive the first season before talking about being a winner.