$BTC Many newcomers light up at the mention of "contracts": no need to hold coins, just get the direction right to make money, doubling quickly.
But once you actually enter the market, you realize—it's not a money-making artifact, but a dragon-slaying knife that sends you down a dead end: if not used properly, you end up cutting yourself first.
1: What is a contract? In one sentence: bet on direction
$ETH No need to buy coins, just judge the rise and fall: rise → go long; fall → go short;
If the direction is right, profits come quickly; if the direction is wrong, losses come faster than you can blink.
2: Two types of contracts: perpetual excitement, delivery stability
Perpetual contracts: indefinite, relying on funding rates to maintain prices, suitable for short-term traders who like excitement, but also the easiest to get liquidated.
Delivery contracts: have an expiration date, settled at spot price upon expiration, lower risk, suitable for stable operations.
3: Five terms every newcomer must understand
Number of contracts: minimum trading unit.
Leverage: amplifies profits, also amplifies risks. 10x leverage means a 10% drop leads to liquidation.
Open position: choose long or short position.
Close position: end the trade, calculate wins and losses.
Forced liquidation: if you don't close your position, the system will do it for you.
In one sentence: if you don't close, it will close for you.
4: For newcomers to survive, risk control is the ceiling
1. Leverage ≤ 5x
To stay alive, avoid those crazy plays with 20x or 50x leverage.
2. Single trade stop loss ≤ 3% of capital
If you have 100,000 capital, the maximum single loss is 3,000 yuan.
If you make three consecutive wrong trades, you'll still have 91% of your capital to continue fighting.
3. Prioritize BTC/ETH
These two are stable contract varieties. Small coins?
A single spike can evaporate your account.
4. Try to trade during the day, avoid night trading
Late at night is a graveyard for contracts, with unpredictable volatility; newcomers entering are just giving away money.
5: Can contracts make money? It depends on whether you are a "warrior"
Those who make money in the long term are not gamblers, but those who follow the discipline.
There are only three core things: right direction; strict stop loss; stable risk control;
First learn not to lose, then learn to make money.
Start with a simulation account, then enter with small funds.
Move too fast, and you'll die quickly; move steadily, and you can go far.
Contracts are not a shortcut to wealth, but a sieve for "survival."
In the past, I wandered in the dark alone, now the light is in my hands, the light is always on, will you follow or not?
