Contracts are not money-making tools; they are magnifying glasses.
Magnify your profits, but also magnify your mistakes.
Many people think contracts are mysterious and complex, but their essence is quite simple:
They are just leveraged versions of spot trading—fast, but dangerous.
So if you want to trade contracts, first engrave these points into your bones:
1. The funding rate is not ornamental; it is a directional indicator.
Positive funding rate: Longs pay shorts → High enthusiasm for longs → Easily overshoot → Don't chase.
Negative funding rate: Shorts pay longs → Bearish sentiment → Room for further downward movement.
Don't pretend you can't see it; this determines whether you are riding with the wind or against it.
2. Leverage is not a thrill; it is a life-and-death line.
The higher the leverage, the lower the margin for error.
Beginners: 3–5 times is enough to make money without getting liquidated instantly.
Above 10 times: That is the battlefield for professional players, not your casino.
You are not losing to the market; you are losing to leverage.
3. Entry relies on structure, not on feeling.
Set the overall direction first:
If the daily trend is unclear → Any short-term moves are gambling.
Look at the four-hour chart for entry:
Pull back to the middle Bollinger band
RSI turns up from a low position
Or break through key levels with volume
These points are what we call "trading."
4. Stop-loss is not an option; it is a bottom line.
Those without stop-loss will eventually get liquidated.
If the price drops to your set level,
Get out immediately, no explanations.
Whether you can survive depends on this step.
5. Take profit must be planned in advance.
Take profit at 10%, 20%,
Contracts rely on "multiple small victories,"
Not a one-time windfall.
The market will always have the next wave,
Profits won't wait for you.
6. Position size is the core of whether you can survive.
For a single asset, only use up to 30% of your capital.
If you bet the whole amount at once,
The market will teach you a lesson.
Conclusion:
Contracts are not about courage; they are about patience, discipline, and risk management.
Whoever can survive longer will earn.
Want to make money in the long term?
First, learn to "stay alive."
