Contract trading is not gambling, but a 'steady, precise, and ruthless' technique!
Many beginners think 'contract trading' is high risk and high threshold, but as long as you master the correct methods, ordinary people can also share in the profits! Today, I will share some practical tips that beginners can easily grasp; remember to save them after reading!
1. First learn to 'preserve life' before talking about making money!
The biggest taboo in contract trading is to blindly go all in!
Strict stop loss: Control each loss within 1%-3% of the principal, for example, with a 1000U principal, the maximum loss per trade is 30U.
Light position operation: Beginners are advised to open positions with 10%-20% of total funds to avoid losing everything in one mistake.
Stay away from altcoins: Only trade mainstream coins like BTC and ETH, which have high liquidity and low slippage; small coins are prone to 'flash crashes'.
2. Technical analysis is your 'third eye'.
1. Trend trading method.
• Use MA moving averages and MACD indicators to determine the overall direction:
◦ Go long: Price is above the MA60 moving average and MACD forms a golden cross.
◦ Short Selling: Price breaks below the MA60 moving average and MACD forms a death cross.
2. In a volatile market, 'buy low and sell high'.
• Go long at support levels (like previous lows), set stop loss below the previous low;
• Go short at resistance levels (like previous highs), set stop loss above the resistance level.
3. Breakout following method.
• When the price breaks above previous highs/lows, immediately follow up with trend trading, combined with volume to determine the authenticity of the breakout.
3. Leverage is not a 'money printer', but a 'double-edged sword'.
• Beginners are advised to use 1-5x leverage; high leverage (like 60x) can easily lead to liquidation due to excessive volatility.
• Rolling warehouse technique: Close positions after each profit, use the profit portion to continue opening positions, avoiding risking the principal.
4. Mindset determines success or failure!
Do not chase rising prices or panic sell: It is better to miss an opportunity than to enter impulsively.
Review summary: Record trading logs daily, analyze reasons for mistakes and successes.
Reject the 'gambler's mindset': Set a maximum daily loss limit (like 5% of the principal), stop immediately if exceeded.
5. Essential guide for beginners to avoid pitfalls.
• Do not engage in contract night orders: Night market has poor liquidity, easily leading to slippage and liquidation.
• Practice with a demo account: First simulate trading for 1 month on platforms like OKX or Binance before investing real money.
• Beware of 'high return' scams: Anything promising guaranteed profits is a fraud!
Summary: Steady and solid, compound interest is the way to go!
The core of contract trading is 'survival + compound interest':
• Earning 1%-2% daily can triple your investment in a year!
• Don't always think about going all in; use scientific strategies and discipline to let money work for you!

I am Xiao O, a professional analyst and teacher, a mentor and friend on your investment journey! As an analyst, my basic goal is to help everyone make money. I will help you solve confusion and issues, and guide you when you are lost.

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