The Survival Iron Rules of the Contract Market
Many people say that contracts are difficult; in fact, the difficulty lies not in the technology, but in the mindset and understanding of the rules. I have managed to survive for 5 years in the contract market not because I predict the best, but because I strictly adhered to these iron rules.
First, stop-loss is not a failure.
Many people stop-loss several times in a row and then rush to recover their losses, resulting in more chaos and ultimately liquidation.
I later learned that once I have consecutive stop-losses, I should immediately stop, summarize the issues, and not engage emotionally. Protecting the principal is essential for the next opportunity.
Second, the position must never exceed 10%.
The most common mistake for beginners is to go all-in, thinking they can double their money overnight, only to see it go to zero in minutes.
I have suffered such losses, so now I strictly control my positions to within 10%; it's better to be slow than to gamble my entire fortune.
Third, following the trend is the way to go.
Resisting against the trend usually ends the same way — in loss.
When the market moves in one direction, following the trend is more important than anything else. It’s okay not to catch the peak, but at least you won’t be buried alive.
Fourth, the risk-reward ratio must be favorable.
The standard I set for myself is 2:1; if it's not enough, I won't engage. Calculate the take-profit and stop-loss before deciding whether to act. This way, even if I make a few mistakes, as long as I seize one opportunity, I can recover the losses.
Fifth, don’t operate frequently.
Placing orders frequently results in increasingly high transaction fees and a more chaotic mindset.
I now only allow myself two opportunities: once before the market opens and once before it closes. Doing less is the biggest discipline.
Sixth, only trade familiar coins.
I never touch unfamiliar varieties. BTC, ETH, and SOL are my long-term research subjects; I clearly understand their rhythms and temperaments, which gives me confidence in trading.
Seventh, cash out after making money.
I have the habit of withdrawing half of my profits immediately, and only then do I continue to play with the rest. This way, no matter how the market moves, my mindset can remain stable.
Contracts are not about who is smarter, but about who can survive longer.
The market is very cruel; most people fail due to impulse and greed, while those who go far are the ones who understand how to control risk.
