Discipline is the line that distinguishes fat meat from the cutting board
I still remember the year I entered the industry, watching a friend turn 1000U into 20000U overnight, and witnessing another friend go to zero in just two minutes. Eight years have passed, and that friend who went to zero has never returned, while the friend who doubled his money also disappeared from the market three months later.
The contract market is like this; it’s not about who makes money the fastest, but about who survives the longest.
Today, I want to set aside those complicated technical indicators and talk about the trading discipline that truly determines life and death. These are experiences I have bought with my hard-earned money, which may not sound so pleasant, but they are absolutely real.
Leverage: 3 times is the bottom line, not the starting price.
Do you remember the statistics from Bybit in 2025? Users with 100 times leverage only have an average survival time of 11 days.
High leverage is not a lottery; it is a meat grinder. My own bottom line is:
Use 3 times leverage in conservative scenarios, and not exceed 5 times in aggressive scenarios.
Mainstream coins are capped at 5 times leverage, while altcoins should not exceed 3 times.
Before each position opening, use the exchange's 'simulated liquidation calculator' to ensure the liquidation price is more than 20% away from the current price.
The leverage multiple is geometrically correlated with the liquidation probability. Data from a certain exchange shows that users with 10 times leverage have an average lifespan of only 17 days, while those with 5 times leverage survive for 89 days.
Stop-loss: 2% tail-cutting art
Setting a stop-loss is not admitting failure, but leaving yourself enough capital to recover. Successful traders can trade without being influenced by emotions, strictly following the rules.
My principle is: a single loss should not exceed 2% of the principal. For example, if you have 10,000 USDT, a single loss cannot exceed 200 USDT.
Stop-loss is an art that requires a decisive mindset:
Once you reach the stop-loss point, exit immediately, without hesitating for a second.
Set the stop-loss position outside the technical support/resistance levels to avoid being triggered by market noise.
Never use market orders for stop-loss, unless you are closing a position.
Capital management: don't put all your eggs in one basket
All the traders I know who have survived in this market for 5 years have one thing in common: they never go all in.
My capital allocation plan is as follows:
Assault team (30%): for high-certainty opportunities, short-term swings.
Defense team (50%): for medium to low-risk trades, trend following
Strategic reserve (20%): only used in extreme market conditions for averaging down or hedging.
Remember, position control is more important than direction judgment. A full position can go to zero with one mistake; learn to build positions gradually and leave margin space.
Emotional isolation: if you have three consecutive losses, you must shut down your computer.
Emotional trading is the number one killer for traders. When profitable, they always want to 'make more'; when losing, they fantasize about 'recovering losses'. This leads to frequent chasing highs and cutting losses, as well as arbitrary stop-loss modifications.
My coping method:
Limit daily trades to no more than 3 to avoid overtrading.
Stop trading the same day after two consecutive losses.
Write an emotional log every week to analyze the psychological triggers of impulsive trading.
Statistics from a domestic futures competition show that the top 10% of annual return participants trade on average 63% less frequently than ordinary participants and hold positions about 4 times longer. This confirms the importance of 'less trading, more observation'.
Meme coin trap: don't touch markets you don't understand.
In every bull market, there will always be those 'meme coins' that rise hundreds of times in a few days. And every time, many newcomers rush in and get trapped at the peak.
Only earn the money you understand, don’t envy others’ 'limit up'. You don’t need to seize every opportunity, just grab the ones you can understand.
My principle:
Only trade BTC and ETH, avoid complex altcoins.
When BTC's volatility exceeds 5%, pause all altcoin operations.
Do not touch any cryptocurrency that has a straight rise or fall of more than 50%.
Funding rate: a barometer of market sentiment
Many people overlook an important reference indicator—the funding rate. This is actually a barometer of market sentiment:
The rate is positive: longs pay shorts, market sentiment is overheated, high probability of pullback.
The rate is negative: shorts pay longs, market sentiment is pessimistic, high probability of rebound
My own experience is that when the funding rate exceeds 0.1%, it's time to be wary of short-term pullback risks; when the rate is below -0.1%, a rebound may be coming.
Survival checklist: quickly self-check before each position opening
After eight years, I still ask myself these questions before opening a position, which has helped me avoid countless liquidation risks:
Is the leverage matched with the volatility of the cryptocurrency? (Mainstream coins do not exceed 5 times, altcoins do not exceed 3 times)
Is the stop-loss set outside the technical levels? (To prevent being triggered by normal fluctuations)
Is the risk exposure less than 5% of total capital? (To prevent significant losses from a single trade)
Have you set stop-loss and take-profit orders? (To avoid emotional interference)
Is the current emotional state suitable for trading? (Pause operations when anxious or excited)
The final heartfelt words
The cruel truth of the contract market is: most people would rather get liquidated than learn. Those who spend time researching every day and can control their emotions have quietly withdrawn and bought houses.
Eight years have passed, and I am increasingly clear: in contract trading, mindset is more important than technique. The market only rewards those who are disciplined, not the smartest or boldest.
Remember, we are trading contracts, leverage is a tool, not a gamble. Use it well, it can help you grow wealth; use it poorly, it is a meat grinder. Your discipline is the line that determines the final result.
Surviving is more important than anything else. Follow Ake for more first-hand information and precise points on cryptocurrency knowledge, becoming your guide in the crypto world; learning is your greatest wealth!#ETH走势分析 #加密市场观察 $ETH
