What I want to talk about today are the pitfalls that are easiest to fall into. It's not to scare you, but I hope you can take a look and understand how to avoid them.
Leverage is something you should never be greedy about.
One thing that beginners love to do is to go all in with 50x or 100x leverage right from the start, even holding onto dreams of doubling their money. What's the result? The market fluctuates casually, and the account is instantly wiped out. I've seen it happen in less than 5 seconds, with over 100,000 U gone.
Contract trading, to put it simply, is not about how bold you are, but whether you have the ability to walk away alive. A leverage of 3 to 5 times is the balance point that allows you to have profit potential without being directly taken out by a sudden correction. This is the prerequisite for continuing to trade while staying alive.
The stop-loss is a lifeline that must be in place.
"Just wait a bit; it will definitely rebound," "I've already lost so much; I can't bear to sell"—I've heard similar thoughts hundreds of times, and every time the outcome is almost equally tragic. Human nature is like this, always hoping that the next second will improve, but the result is often worse.
When opening a position, you must have the stop-loss level in mind. If you're making money, push the stop-loss higher. Remember this: surviving is always more valuable than making a big profit once.
Diversify risks, don't put all your eggs in one basket.
Seeing an opportunity and wanting to go all in at once is not trading; it's gambling. Those who genuinely make stable profits adhere to a strict rule: keep the risk of a single trade within 2% of the total principal.
For example, if your principal is 10,000 USDT, using 10x leverage, a single trade can lose a maximum of 200 USDT. Even if you are wrong ten times in a row, the account can still hold up. This mindset gives you room for mistakes and opportunities for recovery.
Emotions are your biggest enemy.
When the market rises, I impulsively chase after it, and when it falls, I panic and cut my losses. When FOMO kicks in, being liquidated is just a matter of minutes. I've observed those traders who consistently make money over the long term; they are never glued to the screen with bloodshot eyes but instead are planned, follow rules, and do not add drama.
Sleep less, look less at minute-level fluctuations, and detach your emotions from the candlesticks; only then can you truly protect your profits.
Exchanges themselves can be traps; you have to be cautious.
Experienced traders have all been "educated" and know what a spike is, what slippage is, and what extreme market conditions mean. Before a major market event or significant news, avoid taking risks. Choose platforms with good liquidity and large scale to help you avoid unnecessary losses.
The futures market is like this, cruel but fair. Opportunities are always there, but they are only reserved for those who understand the rules and maintain discipline. I hope you can become one of them.
If you are still anxious about which coins to trade in the current market, or if you are feeling emo about missing out or being trapped, stop overthinking it!
I'm not here to paint a rosy picture; I'm here to help you accurately grasp the market, speak with strength, and prove through profits! Here, there are no ambiguities, only clear directives and the joy of securing profits!
Opportunities are always reserved for those who are prepared, and even more so for those who are aligned with the right people!
