'Playing contracts is not about betting on size, it's about betting on mathematics and human nature.'
This is the biggest insight after Amei endured a margin call and turned around to recover. Last month, when he found me, his account only had 3000U left, and he said with red eyes: 'I lost 40,000U following the trades, and if I lose again, I will completely exit the market.'
I didn't let him open a position immediately; instead, I did one thing first: I divided the account into '10% for experimentation + 80% for backup + 10% for emergencies.' Just this step alone prevented him from the impulse of 'going all in'—90% of retail investors fail at this step.
Later, he rolled 3000U into 200,000U in two months, not relying on accurate predictions, but on four counterintuitive details. These details might help you transform from a 'gambler' into a 'strategic trader.'
1. Stop-loss: Set a 'double barrier'; don't wait until the position is liquidated to cut losses.
Most people's stop-loss is a 'psychological stop-loss'—imagining a rebound when in floating losses, fearing to miss out when in floating profits. I let Amei set a double stop-loss rule:
Fixed stop-loss of 2%: for any trade, if the loss reaches 2% of the principal, cut it immediately without hesitation.
Trailing stop-loss to protect profits: after floating profits exceed 5%, set a retracement to automatically close half of the position.
For example, in April when BTC dropped sharply, he made an 8% profit on one trade. According to the trailing stop-loss rule, the position was automatically closed when the price retraced to 6.5%, ultimately preserving a 5% profit. A stop-loss is not an admission of defeat; it is about excluding lucky thinking from the trading system.
2. Three consecutive losses? It's better to 'review and restart' than to stop.
During consecutive losses, many people choose to 'increase position to recover' or 'stop and calm down,' but they often miss a crucial step: finding the common flaws in the consecutive losses.
Amei once made three consecutive wrong trades and found in the review that it was due to 'ignoring the shrinking trading volume'—the price seemed to break through, but the trading volume did not follow, which was a false signal.
Later he established a strict rule: before opening a position, both EMA10 and EMA20 must show a golden cross + trading volume must increase by 20%, improving the win rate from 40% to 70%.
Continuous losses are not a matter of luck; they are a warning of systemic flaws.
3. Profit distribution: find a 'safe haven' for your money.
If you make a profit and don’t withdraw, you will eventually give it back. I let Asha execute tiered distribution every time he earns 3,000 USDT.
Step 1: Withdraw half (1,500 USDT) and completely leave the contract account.
Step 2: Break down the withdrawal—80% into currency funds (to guard against extreme market conditions), and 20% reserved as 'emergency replenishment funds' (only used for key support level additions).
In June, he earned 4,500 USDT and withdrew 2,250 USDT according to the rules. Later, when BTC retraced, he used the reserved 450 USDT to add to his position at the support level without touching the principal. The essence of profit distribution is: to save the money earned by luck using the rules.
4. Position management: 10% is the upper limit, but not every round should be fully invested.
'Never go all in' is nonsense; the key is to adjust positions dynamically according to the market.
In a volatile market (such as BTC ranging from 65,000 to 70,000): reduce position to 5%, earn small profits from fluctuations, and do not bet on direction.
Trend market (breaking 72,000 and doubling trading volume): increase position to 10% and let profits run.
In the early days, Amei always used a 10% position regardless of market conditions, resulting in unnecessary transaction fees during a volatile period. Later, he adjusted according to the market and lost only 2,000 USDT each month. The size of the position does not depend on the principal but on the certainty of the market.
The wildest part of the contract market is not the large fluctuations but the misconception that 'quick money is easy to earn.' Data shows that 92% of users who trade more than 50 times a month lose money, while Amei now opens no more than 3 trades a day, and each trade must fill out a trading log: reasons for opening a position, stop-loss point, and take-profit point.
He said: 'I used to think that K-lines were about gambling on size, but now I understand that it is about using rules to turn 'gambling' into 'calculation'.'
If you are also struggling with contracts, remember: Risk control is not about limiting your ability to make money; it is about ensuring you always have the opportunity for the next round. Follow Ake to learn more firsthand information and precise points about cryptocurrency knowledge, becoming your guide in the crypto world. Learning is your greatest wealth!
