I've seen too many friends trading contracts, their eyes glued to the K-line like gamblers staring at dice, chasing when prices rise, buying when they fall, floating when making small profits, and stubbornly holding on when losing, ultimately shrinking their account from five digits to three — to put it bluntly, trading without rules is like running naked; losing all is just a matter of time!
I have been analyzing cryptocurrency assets for 8 years and trading contracts for 7 years. I entered the market with a salary at the age of 27, and within two years, I built my account to eight digits—not relying on 'guessing price movements' luck, but on a set of rules that are 'too simple for others to want to learn' yet are risk-free. Today I'm pulling out the deep-seated tips, each of which has been tested with real money. Understand the execution, and you too can transform from 'being cut by others' to 'steadily making profits'!
7 rules of practical trading: Lock in risks, let profits come naturally
1. Capital allocation: Never put all eggs in one basket (the first rule of survival)
I always split my account into 5 equal parts, using only 1 part of the capital for each trade. Set fixed take profit and stop loss: run away after losing 10 points, so a single loss only accounts for 2% of the total capital. Even if I make 5 consecutive wrong trades, I only lose 10%, and it won't hurt the bones; at least leave 10 points for take profit, never be greedy to 'earn the whole journey', so I will never be trapped by market reversals.
2. Go with the trend: Make friends with the big trend, the difficulty of making money is directly halved
Remember: rebounds during a downtrend are all 'trap for the greedy', while pullbacks during an uptrend are 'money picking opportunities'! I never guess 'where the bottom is', nor do I gamble on 'where the top is', I only trade 'along the trend'. For example, if the short-term trend is upward, wait to enter during the pullback; if the long-term trend is downward, no matter how enticing the rebound is, I will firmly stay out of the market — trading against the trend is like trying to stop a train with your hands, no matter how strong you are, you won't hold it.
3. Avoid 'trap of rapid rise': Never touch coins that soar after a surge
Whether mainstream assets or niche coins, a sudden surge of more than 30% in the short term is likely to 'fall back to its original shape' afterward. When high prices stagnate, trading volume increases but prices do not rise, indicating that funds are quietly fleeing. At this time, holding onto the luck that 'it might still rise' and entering the market basically makes you a bag holder — I haven't stepped into such pits for 7 years because I remember 'don't chase rapid rises and don't buy on rapid falls.'
4. MACD signals: Use technical indicators to 'hit the brake' on trading
Newbies shouldn't just look at prices; learn to use MACD to find entry and exit points: When the DIF line and DEA line form a golden cross below the 0 axis and both break through the 0 axis, that's a stable entry signal; if a death cross forms downward above the 0 axis, regardless of how much profit there is, immediately reduce positions and exit. Technical indicators are not omnipotent, but they can help you avoid the pitfall of 'placing orders based on feelings', making entry and exit more justified.
5. Volume and price are the soul: Trading volume never lies, distinguish true and false markets at a glance
What do you rely on to judge the market? It's not rumors, but the combination of volume and price! If it has been consolidating for a long time at a low level, and suddenly the trading volume increases and the price breaks through a key position, that's 'real market', worth paying close attention to; if the trading volume surges at a high level but the price cannot rise, it indicates that 'funds are unloading', which is 'fake market'; run away quickly — trading volume is the 'truth' of the market, follow it, you won't go wrong.
6. Only trade in an upward trend: Don't waste time in fluctuations, the win rate doubles
I only trade 'with a clear upward trend': 3-day line upwards = short-term opportunity, quick in and out; 30-day line upwards = medium-term market, can hold for a while; 84-day line upwards = main upward wave, focus on layout; 120-day line upwards = long-term trend, hold on for big profits. If all moving averages are downward, or if there is no direction in sideways fluctuations, I directly stay out of the market — back and forth stop-loss in a fluctuating market is more tiring than losing money, it's better to keep the funds for certain opportunities.
7. Weekly review: Trading is not 'buying and selling', but 'continuous optimization'
Every Sunday, I must do one thing: Review all trades from the week. Check whether the weekly K-line trend conforms to the initial judgment. Are profitable trades based on luck or rules? Where did the losing trades go wrong? If the trend has changed, regardless of whether the position is profitable or not, immediately adjust the strategy; if the execution is not in place, give yourself a 'penalty stop' — trading is like driving, regular maintenance is required to avoid a crash.
Lastly, let me say something very straightforward: Trading contracts is not about betting on size, it's 'a game of following the rules'
7 years of practical experience tells me that those who can make long-term profits in the contract market are never the ones who 'guess the best', but the ones who 'execute the hardest'. Keep these 7 rules in mind and execute them like following traffic rules, you will find: making money is actually not that hard, what's difficult is overcoming greed and luck.
Next, I will continue to share practical skills for K-line analysis and trend judgment. Follow me, next time I'll take you apart 'how to accurately find entry points' and avoid 90% of the traps! What is the most painful pit you have stepped on while trading contracts? Let's chat in the comments, and I'll help you analyze where the problem lies~
