Newcomers to perpetual contracts, if you want to survive and make money, just memorize these 4 rules
1️⃣ Avoid over-leveraging; this is the first iron rule
When entering the contract market, don't think about how much you can earn; first think about one thing: how much can I lose at most?
You must allocate your funds to give yourself room for mistakes. In the most risky situations, you should break your losses into at least 3 parts.
For example: if your account has 200,000, you can lose a maximum of 20% (40,000)
Break it down: 10,000 + 10,000 + 20,000.
As long as you get one right out of three, you can still survive.
Surviving itself is a winning edge.
2️⃣ Always look at the big trend first, don’t get lost in trying to catch the top or bottom
While fluctuations seem comfortable, they are actually the hardest; trends may look difficult, but they are the most profitable.
Why? Trends require chasing the rise and cutting the fall, and you need to hold your position, which goes against human nature.
In an upward trend: a pullback is not a reason to short.
A pullback of 10%–20% is actually a safe range to go long.
If you haven't entered, wait; if you’ve exited, don’t rush! Opportunities are always within the trend, not in emotions.
3️⃣ Take profit and stop loss are not details; they are life-and-death lines.
For long-term profitability, three points must be met:
1️⃣ Single trade stop loss ≤ Total capital 5%
2️⃣ Single trade profit ≥ Total capital 5%
3️⃣ Overall win rate > 50%
As long as you achieve: profit-loss ratio > 1, win rate > 50%
Your account will definitely grow positively. You don’t need to be right on every trade; you just need to: earn more when you win, lose less when you lose.
4️⃣ Never engage in high-frequency trading; contracts are not about showing presence.
BTC perpetual contracts are open 24 hours, but that doesn’t mean you should be trading 24 hours.
The most common mistakes newcomers make:
Too many trades → mistakes
Mindset explodes → revenge trading
Heavy positions against the trend → large losses
Remember this: opportunities are few but significant; trades are few but fierce.
Heartfelt words
In the contract market: it’s not about who is smarter or who trades more
But about: who makes fewer mistakes and lasts longer.
First learn to avoid liquidation, then talk about stable profits. If you stabilize this step, you have already won over a large portion of people.
Quality circles change destiny; follow good mentors, and you’re halfway successful in the crypto space!
Remember: in the crypto space, cognitive differences are the biggest leverage.
