I have seen too many people rush into the contract market with dreams of 'tripling their investment in 3 days', only to be kicked out by the market before they even warm up their account password. To be honest, the game of contracts in the crypto world has never been about who runs the fastest, but about who can stay at the table the longest—after all, being alive gives you the chance to hit a flush.
As a veteran in the field for five years, oh no, a seasoned crypto analyst, I almost said goodbye to this market entirely because of a foolish decision. It was a deep night two years ago, with only 15,000 of my 'lifesaving money' left in the account. I stared at the K-line fluctuating on the screen and, inexplicably, pressed the button to open a position with 40 times leverage.
The market surged like it was on steroids, and in just ten minutes, my floating profit soared to 30%. I even started contemplating whether to pay off my credit card first or get a new computer. But before I could smile, the K-line suddenly hit the brakes, followed by a cliff-like drop. Forty minutes later, my account balance was down to 7500, and the cold sweat on my palms soaked a large part of the keyboard. That night, I realized that high leverage is not a wealth-building tool; it is a trap set by the market for the greedy—you watch their profits while they watch your capital.
Want to survive in the contract market? engrave these 3 key points into your DNA.
1. Position is the lifeline, never put all your eggs in one basket.
I always follow the '30% position rule' when opening positions, no exceptions even in the most certain market conditions. Many beginners dare to go all in, calling it 'seeking fortune in risk,' but the result often is 'risking your life in danger.' Remember, the market is never short of opportunities, but it lacks those with capital waiting for opportunities. As long as the green mountains remain, you don't have to worry about firewood, this saying is more applicable in the contract market than anywhere else.
2. Competing with the market is less effective than competing with yourself: emotions are more important than skills.
Do you think the root of your losses is poor skills? Wrong, it’s emotional control. When you become irritable due to floating losses or ecstatic due to floating gains, you have already become a puppet of the market. I now spend ten minutes daily on 'emotional review'; as soon as I notice my heart racing or my palms sweating, I immediately close the screen and go for a walk. Trading is a marathon, not a sprint; maintaining calm is essential to completing the journey.
3. Don't chase trends; wait for the wind to come: only engage with markets you understand.
Every day the market has various 'positive news' and 'hot cryptocurrencies,' but 90% are traps designed to attract retail investors. I now focus on the trend charts of 3 core targets daily, unaffected by other cryptocurrencies skyrocketing. Remember, you earn money within your cognitive range; returns exceeding that are just luck, and luck will eventually need to be paid back. Instead of wasting time in countless incomprehensible markets, it's better to delve deep into the fields you are familiar with.
During last year's bull market, my friends were all heavily leveraged, sharing profit screenshots in groups every day, while I still followed a steady, light-position strategy. Later, when the bear market came, those who once flaunted their earnings either disappeared or asked everywhere, 'How can I break even?' Meanwhile, my account quietly surpassed a million.
The contract market is like a mirror; it cannot reflect how skilled you are, but it can show your greed and fear. The market never rewards those who seek quick gains but favors those who remain clear-headed.
If you are still struggling in the contract market, don’t rush to make money; first, learn to survive. Follow me, and I will share more practical tips, such as how to set stop-loss and take-profit to avoid being easily stopped out, and how to identify trend turning points to avoid chasing highs and selling lows. After all, in this market, we not only need to survive but also to thrive, right?
