Friends who have just entered the circle often share with me such 'highlight moments': trying contracts for the first time, casually opening positions, getting the direction right, doubling funds within a few days, and instantly feeling like the next myth in the crypto world. But the market will quickly teach a lesson: on the third day, the market changes dramatically, profits are rapidly given back, and the principal also starts to shrink, leaving only a deep sense of confusion.
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I have heard too many stories like this. The market never changes its rules because of personal confidence. Real profits are not based on momentary luck, but on a set of repeatable disciplined systems. Below are six practical rules I have summarized, hoping to help you avoid unnecessary detours.
Funding rate: the 'thermometer' of market sentiment
Funding rate is a unique balancing mechanism for perpetual contracts, settling fees between long and short positions every 8 hours. When the rate is positive and relatively high, it indicates strong bullish sentiment in the market, but it often also means increased risk of a short-term correction; when the rate is negative, it reflects market pessimism, possibly suggesting that the trend will continue to decline.
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My usage:
When the rate remains above 0.05%, be wary of chasing long positions and avoid becoming a 'buyer';
When the rate remains negative for a long time and gradually narrows, pay attention to rebound opportunities.
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Leverage: a risk amplifier, not a proof of courage
High leverage is a shortcut to rapid liquidation. For example, with 10x leverage, a 10% price reversal can lead to the principal going to zero.
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My principles:
New traders should control leverage at 3-5 times, with a single loss not exceeding 2% of total capital;
Gradually withdraw principal after profits, using only profits to seek excess returns
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Entry timing: patiently wait for 'resonance signals'
Blindly opening positions is worse than waiting with no positions. I am accustomed to confirming entry based on three points:
Trend direction (daily level);
Confirm key support/resistance levels with a retest;
Follow when there is a significant breakout (trading volume increases significantly)
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Stop-loss: the 'safety belt' to stay alive
Trading without a stop loss is like skydiving without an umbrella. My stop-loss rule:
Set a physical stop-loss line before entering (e.g., if it drops 3% below the opening price);
Never move the stop-loss level to avoid emotional interference
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Take profit: in batches, 'realize for safety'
Profit is a floating number; only when it is realized is it profit. My take-profit strategy:
Close 50% of the position when profit reaches 20%, setting the remaining position to a break-even stop-loss;
Decisively close all positions when profits retrace by 30%, without being greedy for the last bit.
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Position management: never fully allocate, leave enough bullets
Position determines mindset. My risk control bottom line:
One-way positions should not exceed 30% of total capital;
Keep 50% cash to cope with extreme market conditions
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In conclusion: discipline is the only weapon for ordinary people
The cruel truth of the cryptocurrency world is: smart people often fail due to overconfidence, while ordinary people win by respecting the rules. Institutions have information advantages, large players have capital advantages, and retail investors' only armor can be discipline.
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If you keep cycling through 'profit → expansion → loss', remember: the market always has opportunities, but the principal is only once. If you are trapped in confusion and don't know how to operate, follow me. I will help you avoid pitfalls and steadily protect your principal while gradually earning profits!
