From a base position to a 400-fold return in 4 months, turning 20 million into a fortune! Does it sound like a joke? But behind this lies 3526 days of practical experience. The secret to surviving in the futures market: 8 ironclad rules over 5 years, avoiding frequent trading and holding losing positions against the trend, a 2:1 profit/loss ratio, and a position size of no more than 10% are key. Having navigated the futures market for 5 years, I've seen too many people turn tens of thousands into hundreds of thousands, only to have their accounts wiped out within a week. Futures trading can indeed allow for huge gains with a small investment, but it can also lead to rapid account wipeout—90% of losses aren't due to poor skills, but rather falling into "human nature traps" and "rule loopholes." The following 8 ironclad rules each carry the blood and tears of lessons I and those around me learned. Understanding them will help you avoid most account wipeout pitfalls. 1. Don't rush to counterattack after a stop-loss! Stop trading after consecutive stop-losses. When I first started trading futures, my most common mistake was "immediately trying to recover losses after a stop-loss." Once, I shorted Bitcoin and lost 800 USDT after two consecutive stop-loss orders. In a moment of impulsiveness, I thought, "The third time will definitely be right," so I leveraged my position and opened a large trade. The result was a complete liquidation, wiping out my entire capital. Later, I looked at the data and discovered that 78% of liquidation cases occur in impulsive trades after consecutive stop-loss orders. Now I have a "double stop-loss circuit breaker mechanism": after two consecutive stop-loss orders, I immediately close the trading software and spend half an hour reviewing the trades – was the trend misjudged? Or was the stop-loss level set incorrectly? If I can't find the problem, I stay out of the market for a day. The market is never short of opportunities; once your capital is gone, any future opportunities are irrelevant. Remember: stop-loss is about controlling risk, not "failure." Rushing to counterattack will only lead to greater losses. 2. Don't believe the "get rich overnight" nonsense! Never exceed 10% of your capital. Statistics from a certain contract platform sent chills down my spine: 92% of users who trade with a full margin in a single trade will have their assets wiped out within 3 months. New traders often treat futures contracts like an "ATM," thinking they can "go all in and get rich quick." But leverage is a double-edged sword. With 10x leverage, a 5% fluctuation can wipe out your entire account. The worst case I've seen: a guy went all-in on altcoins with 50,000 USDT. When it rose 5%, he got carried away, and when it fell 5%, he panicked and tried to hold on, resulting in a margin call within half an hour. His 50,000 USDT was reduced to less than 1,000 USDT. Now I strictly control my position size: I never open a trade exceeding 5%-10% of my capital, and with 50,000 USDT, I only open a maximum position of 5,000 USDT.Even if you miss 10 market moves, as long as you avoid one margin call, you'll outperform most people. Futures trading is a marathon, not a sprint; only a steady, consistent approach will survive. 3. Trading against the trend = fighting against your money! Never stubbornly fight a trending market. Last week, Bitcoin's 4-hour chart plummeted 15%, and some people in the community shouted "it's bottomed out," going all-in to buy the dip. They ended up getting liquidated three times within three hours, crying out that "the market is unreasonable." But is the market really unreasonable? In a trending market, trading against the trend is like a mantis trying to stop a chariot. There's a golden rule for judging a trending market: look at the 1-hour candlestick chart. If five consecutive candlesticks close positive (or negative), and the moving averages are diverging (short-term moving averages significantly outperforming long-term moving averages), this is a strong trend signal. At this time, don't think about "buying the dip" or "shorting the rebound." Following the trend or remaining on the sidelines is the right way. Last year, Ethereum rose from $1800 to $4000. By adhering to the principle of "not going against the trend," I only went long and never short. Even during pullbacks, I didn't open any random orders and steadily earned 3 times my initial investment. 4. Don't trade unless the risk-reward ratio is at least 2:1! Don't become a victim of "small profits and big losses." A fatal flaw of countless retail investors is: hastily taking profits at 1000 USDT and only painfully cutting losses at 2000 USDT, resulting in "profits not covering losses" in the long run. The scientific trading logic is: before opening an order, you must set a risk-reward ratio of at least 2:1—for example, if the stop-loss is set at 500 USDT, the take-profit should be at least 1000 USDT. If this standard isn't met, absolutely do not trade. I set a rule for myself: upon opening the trading software, first calculate "how much stop-loss and how much take-profit." If the risk-reward ratio is 1:1.5, immediately cross it off without hesitation. Last year, when trading SOL contracts, I initially planned to go long at $100. After calculating, the stop-loss was $95 (a loss of 500 USDT) and the take-profit was $105 (a gain of 500 USDT), a 1:1 risk-reward ratio, so I decisively gave up. Later, I waited for it to retrace to $90, setting the stop-loss at $85 (a loss of 500 USDT) and the take-profit at $100 (a gain of 1500 USDT), a 3:1 risk-reward ratio, before entering the market and steadily making a profit of 1500 USDT. Remember: Trading is not about "making more correct trades," but about "making more money when you're right and losing less when you're wrong." 5. Frequent trading = working for the exchange! Experts are waiting for the right opportunity. Data from a leading exchange is disheartening: the average user trades 6.3 times per day, while the top 10% of profitable traders only trade 2 times per week.8 times. When I first started trading contracts, I also loved to "show off," opening 10 trades a day. I paid a lot in commissions, but my principal dwindled. Later, I realized that frequent trading not only wastes money but also damages your mindset. The market fluctuates every day, but 90% of the fluctuations are "ineffective noise." Experts wait for "high-certainty opportunities"—such as trend breakouts or the convergence of key support and resistance levels. Now I only check the market twice a day (half an hour after the market opens and half an hour after it closes), and do whatever I want the rest of the time. Last year, Bitcoin traded sideways for 10 days, and I didn't open a single trade. I watched others lose money back and forth during the sideways movement, and only entered the market after the breakout. One trade made me more than others made in 10 trades. Remember: missing an opportunity is not a pity; blindly entering the market is terrible. 6. You can't make money outside your knowledge! Only trade coins you have thoroughly researched. When Dogecoin surged 300% because of a tweet from Musk, some people in the group followed suit and went long, only to be caught at the peak and liquidated when it crashed. They didn't lose due to luck, but due to a lack of understanding – how could they think they could make money when they didn't even understand Dogecoin's market capitalization and token distribution? The core principle of contract trading: only trade coins you've thoroughly researched. I currently only trade three coins: Bitcoin, Ethereum, and SOL, and I've thoroughly researched each one's volatility patterns, major players' habits, and key price levels. I don't touch unfamiliar coins no matter how sharply they rise, because I know: money earned by luck in the short term will eventually be lost through a lack of skill. Staying within your circle of competence is the only way to avoid the fatal trap of "trading based on intuition." 7. Holding onto losing positions is a recipe for disaster! Admit your mistakes; only by surviving can you have a chance. The cruelest truth of the leveraged market: holding onto losing positions = gambling with your principal. With 10x leverage, price fluctuations are amplified 10 times, and a 5% floating loss can turn into a margin call while holding onto a losing position. Statistics from a contract trading community show that users who hold onto losing positions three times consecutively have a 91% chance of being liquidated. The most stubborn guy I've ever met: He went long on Ethereum, set a stop-loss at $3000, and when it dropped to $2900, he thought it would "rebound," so he canceled the stop-loss and held onto the position. As a result, it dropped to $2500, and he was liquidated, losing 200,000 USDT. Now I always set a stop-loss when I open a trade, and I cut my losses as soon as it hits the stop-loss point. I never "wait and see." If I'm wrong, I admit it. A 5% stop-loss is better than a 100% liquidation—as long as you're alive, you can make it back on the next trade. 8. Don't get cocky after making a profit!Withdraw half of your principal, and treat the rest as "game currency." Human weaknesses are most easily exposed when profits are made: making money leads to reckless trading and leverage, resulting in profit erosion and even losses. I've learned this the hard way: I once made 50,000 USDT, became arrogant, thought I was a god, and went all-in on an altcoin contract, losing all my profits and 20,000 USDT of principal in just three days. Now I have a strict rule: after each profit, immediately withdraw 50% of my principal. For example, if I make 10,000 USDT, I transfer 5,000 USDT to my bank account, and treat the remaining 5,000 USDT as "game currency," so even if I lose it, I won't feel bad. This locks in profits and keeps me clear-headed—you'll find that trading with "profit" is much more stable, and you won't make reckless moves out of fear of losing your principal. Finally, I want to say: contracts are not gambling, but a "probability game with controllable risk." The core of these eight ironclad rules is one: use rules to control human weaknesses. Stop-loss, position control, trend following, waiting for opportunities, avoiding holding losing positions, adhering to established principles, and taking profits... By doing these things well, you've already avoided 90% of the loss traps. Remember: the winners in the futures market are not those who "predict market trends most accurately," but those who "control risk best." Minimizing losses is equivalent to making gains; only by surviving can you wait for real opportunities. May you walk steadily and profit sustainably in the futures market by following these 8 ironclad rules. Besides the techniques mentioned above, I've consistently achieved stable profits in investing by strictly adhering to these fifteen principles: 1. Market Crashes Test True Value: If the market crashes but your coin only drops slightly, it indicates that major players are supporting the price and preventing further declines. Hold onto this coin with confidence; it will definitely make money in the future. 2. Simple Tips for Beginners: If you're new to cryptocurrency trading and don't know how to buy and sell, the simplest method is to use the 5-day moving average for short-term trading. Hold the coin if the price is above the 5-day moving average, and sell immediately if it falls below. For medium-term trading, use the 20-day moving average; sell if it breaks below the 20-day moving average. The best method is the one that suits you. The difficulty in trading lies in consistently executing it. Don't overcomplicate things; stick to one method, and you'll outperform most people. 3. Skillful Entry During the Main Uptrend: If the price of a coin enters a main uptrend without significant volume, buy decisively. Hold the coin when the volume increases and when the price drops but the trend remains intact.4. Be decisive with short-term stop-loss: If you buy a coin and it doesn't fluctuate much for three days, and instead falls, resulting in a 5% loss, don't hesitate to cut your losses unconditionally. 5. Oversold rebound signals: If a coin has fallen 50% from its high and continued to fall for eight days, it has entered an oversold channel, and an oversold rebound is imminent. Consider buying at this time. 6. Trade leading coins: When trading cryptocurrencies, focus on leading coins. They rise the most and are the most resilient when falling. Don't be afraid to buy; cryptocurrency trading often goes against conventional wisdom. Strong coins tend to get stronger. For leading coins, buy high and sell high in the short term! 7. Follow the trend, don't be greedy for low prices: Buying coins isn't about buying at the lowest possible price; it's about finding a suitable entry point. Avoid low-quality coins; following the trend is key. 8. Review and Find Methods: Don't get carried away with profits. Review your trades carefully and consider whether it was luck or genuine skill. Finding a stable and suitable trading system is key to consistent profitability. 9. Holding No Position is Also a Skill: Don't recklessly experiment with trading. If you're not absolutely certain you'll make money, don't force a position. Knowing when to buy makes you a novice; knowing when to sell makes you a master; and knowing when to hold no position makes you an investment guru. When trading, prioritize preserving your capital, not just making money. 10. Fixed System for Stable Operation: In the investment market, don't always try to adapt to changing circumstances; this is often a mistake. Use your fixed trading system to adapt to any situation. Sometimes, not making hasty moves is the best defense. Often, your reluctance to sell or your inability to resist buying are precisely when you make the most mistakes. 11. Passion Without Forgetting Responsibility: Those who persist in trading for more than four years are truly passionate. But don't become too obsessed; family is your most important responsibility, don't forget it. 12. Take responsibility and be accountable: We can't control the market environment, but we must be responsible for ourselves. If an investment fails, don't blame others. No matter the circumstances, you must bear the consequences of your own decisions. Only by taking responsibility can you face your mistakes and avoid repeating them next time. 13. Listen less to rumors: There are no absolutely right or wrong opinions in the market. Often, what you see and hear is either what others want you to know or what you yourself want to hear.When you lose interest in the media or the methods of so-called experts, congratulations! You're not far from mastering the basics and achieving success, because you've likely developed your own judgment and perseverance. 14. Trading is about cultivating your mindset: You think you're trading market trends, but you're actually cultivating yourself. Behind every success lies silent dedication and patience. To achieve great things, you must endure hardship. Time is the most precious asset; endurance is more important than brainpower; talent isn't important, mindset is key! Ten years of trading, six years full-time, I've tamed greed and fear, going from huge losses to stable profits. Now I can take care of my family while my account steadily grows. Trading isn't about luck, it's about understanding and execution. First, understand MACD: the "thermometer" of trends. MACD is a moving average thermometer: blue line (short-term), yellow line (long-term), histogram (difference), zero axis divides bullish and bearish (bullish above, bearish below). - Golden cross and death cross indicators: A golden cross above the zero line is strong, while a death cross below the zero line is severe. - Divergence is a warning sign: Sell when the price makes a new high and the indicator falls (top divergence), buy when the price makes a new low and the indicator rises (bottom divergence). Remember: it lags behind, so don't aim for perfect buy and sell points; use it in conjunction with other indicators. 11 Bloodstained Rules: 1. Don't speculate blindly when the market is sideways; 2. Hot coins should move within 3 days; don't linger. 3. Hold strong trends; don't be scared off by fear of heights. 4. Sell half your holdings on a large bullish candle at a high price. 5. The 20-day moving average is a safety net; buy above it and sell below. 6. Don't sell on rallies, don't buy on dips, and don't act during sideways movement. 7. Diversify your portfolio; no single coin should exceed 10% of your total portfolio. 8. Analyze fund flows for positive and negative news; don't believe the news. 9. Use three indicators: MACD, Bollinger Bands, and volume. 10. Write a plan for every trade (what to buy, position size, stop-loss and take-profit). 11. Stop-loss and take-profit are lifelines; cut losses at 3%-5% and sell half your holdings on rallies. Trading is about discipline; only by following the rules can you survive. The market doesn't lack opportunities; it lacks people who survive to see them. Adhere to these rules, and you too can make steady profits. The crypto world is a battlefield, but also a wealth-generating pool! Some people lose everything, while others make a fortune effortlessly. The difference lies in these 11 proven practical strategies! Master these strategies, and you too can turn cryptocurrency trading into a sure-fire way to make money! 1. Observe after consolidation at high or low levels. When the market is in a consolidation phase at high or low levels, it is more prudent to wait and see.The appearance of sideways movement often foreshadows a trend reversal. After digesting previous fluctuations, the market will eventually choose a clear direction. At this time, rash actions may lead to unnecessary losses. Waiting for the market trend to become clear before following the trend is the rational approach. Experienced traders have repeatedly reminded that "during sideways movement, observation is more valuable than blind trading." Secondly, avoid holding onto hot positions; adjust positions flexibly with the market. In short-term trading, popular positions are often the result of speculation. Once the hype dissipates, funds will quickly leave the market, leaving investors stuck in a passive position. Therefore, experienced traders advise against holding onto popular positions for too long, but rather to adjust flexibly and always maintain flexibility. As he said, "Short-term hot positions come and go quickly, and a slight misstep can lead to chasing highs and selling lows. Successful short-term trading is never about blindly following the crowd, but about staying clear-headed at all times and 'doing it from beginning to end, only to end up with nothing.'" Third, in an uptrend, a gap-up opening requires firm holding. If a candlestick gaps up with increased volume during an uptrend, it indicates the market has entered a phase of accelerated growth. At this time, one should remain calm and hold their position firmly, as this often leads to a significant surge. Experienced traders call this the "growth phase," emphasizing the need for unwavering conviction and resistance to short-term fluctuations to achieve substantial profits. Fourth, a large-volume bullish candlestick requires decisive exit. Regardless of whether the market is at a high or low level, a large-volume bullish candlestick is a signal to exit. In this situation, even if the price hits the daily limit up, one should decisively close the position, because in most cases, a pullback will follow a large-volume bullish candlestick. Our experienced traders told us, "No matter how tempting the profits are, knowing when to take profits and decisively closing positions is key to avoiding profit retracement." The core of this strategy lies in "knowing when to advance and retreat," meaning that risk must be mitigated and profit drawdowns controlled in all circumstances. Fifth, buy on a down day above the moving average, sell on a up day below the moving average. Moving averages are one of the key references for short-term trading. If the stock price is above an important moving average and a down day occurs, it's a suitable buy signal; conversely, an up day below the moving average may indicate weakening upward momentum, making it suitable to sell and exit. In short-term investing, generally only focus on the daily moving average or the attack line; avoid indecisiveness and don't hold positions for too long.A seasoned trader advised, "No more than a week, act within three days, and don't dwell on missed opportunities." Short-term trading emphasizes speed and precision; holding for too long increases risk. Sixth, don't sell on rallies, don't buy on dips, and stay put during sideways movement. In the cryptocurrency market, volatility is high, and this principle is considered a fundamental survival rule. If the current price isn't significantly higher than the purchase price, don't sell easily; conversely, if there's no significant drop, don't rush to buy. When the market is sideways, it's safer to observe. The seasoned trader calls this "stability first," as any hasty trade can lead to losses. Long-term profits don't rely on frequent trading, but on rationally choosing entry and exit points. Seventh, less is more, and invest within your means. In the cryptocurrency market, flexibility is key. Even with high confidence, it's not advisable to invest a large amount of capital at once; proper portfolio diversification is crucial. The seasoned trader reminded us, "It's better to invest less than to be greedy," because unexpected market fluctuations can occur at any time, and diversification reduces the risk of a single investment. For every trade, a reasonable position sizing should be established to avoid being caught off guard by sudden market fluctuations. Eight, Learn to interpret market news. In the cryptocurrency market, the influence of news cannot be underestimated. Market news often directly triggers significant price fluctuations, potentially leading to sharp rises or falls. Therefore, investors should learn to interpret market information, especially major events and policies. Experienced traders advise beginners to remain on the sidelines when faced with major news, as excessive intervention can lead to unnecessary losses. Nine, Master technical analysis. Technical analysis plays a crucial role in the cryptocurrency market. Experienced traders recommend that beginners systematically learn technical indicators, develop a learning plan, and master analytical tools such as moving averages, KDJ, Bollinger Bands, candlestick patterns, volume-price relationships, and fund flows. Technical analysis requires long-term accumulation and cannot be mastered overnight. Mastering technical analysis can help investors determine buy and sell points and reduce unnecessary losses. Ten, Develop a trading plan and avoid frequent trading. Frequent trading not only incurs high transaction fees but also interferes with trading psychology, leading to emotional trading. Experienced traders emphasize, "Trading requires planning; it cannot be done blindly and arbitrarily.""In the cryptocurrency market, frequent trading often means greater uncertainty. An effective trading plan helps investors maintain a rational and clear mind. XI. Effective Risk Control: Set Stop-Loss and Take-Profit Points. Before each trade, set reasonable stop-loss and take-profit points to keep risk within an acceptable range. When the stop-loss or take-profit point is reached, exit decisively instead of greedily pursuing further profits. Cryptocurrency prices fluctuate wildly, and experience tells us that 'reasonable stop-loss and take-profit are key to trading success.' Even experienced investors cannot accurately predict the market; therefore, sound risk control measures are essential for every investor. In conclusion: Cryptocurrency trading is not a quick fix, nor can it be sustained by luck or following trends. Experience tells us that success lies in rationality and patience. The simplest path is often the best; the key is to find a method that suits you, adhere to principles, and practice repeatedly, rather than chasing short-term trends and quick profits. Stable profits come from a balanced mindset, risk control, and a deep understanding of the market. The Ultimate Guide to the 200-Day Moving Average: Professional Traders Teach You How to Avoid Being Swept Out by Market Fluctuations and Profit from the Entire Market." Trend! The most common mistake traders make is expecting a "holy grail" of trading while neglecting the learning and experience gained in actual trading. New traders are strongly advised to develop a detailed plan. This plan should set parameters for each trade, such as which market conditions are suitable for trading, how to enter and exit, and how to manage trades. If trading consistently results in losses, it's crucial to reflect on your trading plan and continuously improve it. The 200-day moving average is one of the most closely watched indicators. Just open any financial news outlet, and you'll hear arguments like: "The S&P 500 has fallen below its 200-day moving average—a bear market is here!" "Buy when the price breaks above the 200-day moving average!" "Apple's stock closed below its 200-day moving average—sell now!" But the question is: what practical help does this offer traders? Absolutely nothing. On the contrary, it only manipulates your emotions, inducing you to buy or sell at the wrong times. But don't worry, we're about to completely change that.