Why do you lose more and more when trading contracts, and the more you lose, the more obsessed you become? I entered the industry at 27, and by 34 my account had already broken eight digits, relying on nothing but luck — I’ve seen too many retail investors treat 'trading by feeling' as a skill, only to become the market's 'cash withdrawal machine'! The core of making money in contracts can be summed up in two words: discipline! These 7 iron rules, each one is a lesson learned from my own hard-earned money, if executed properly, you will find that making money can be so 'boring and stable'!
Funds are divided to lock risks in their infancy: I never use more than 20% of the principal for a single trade! The total funds are divided into 5 equal parts, and I only move 1 part each time, setting a hard stop loss of 10 points — even if I make a wrong judgment, I only lose 2% of the total funds, and even if I make 5 wrong judgments, I can still keep 80% of the principal to bounce back. For profits, at least leave a 10-point take profit; don't be greedy for the 'last coin', securing profits is the way to go! I've seen too many people make a 3-point gain and get carried away, thinking about doubling their money, only to end up losing and exiting the market, which is really unnecessary.
Go with the flow, be the 'follower' of the trend, not the reckless 'bull': Is a rebound in a downtrend? It's all a trap to lure in buyers! A pullback in an uptrend? That's the golden opportunity for low entry! I never try to catch the bottom, nor guess the top, just follow the big direction — do short trades when the 3-day line is up, medium trades when the 30-day line is up, sit on the main rising wave when the 84-day line is up, and layout long positions when the 120-day line is up. Following the trend makes it twice as easy to make money, with a win rate at least increased by 50%!
Don't even touch coins that spike suddenly, don’t gamble on the 'final carnival': Whether it’s mainstream coins or potential coins, after a rapid surge in the short term, 90% are at the end of their strength. During those days of stagnation at high positions, the main force is quietly dumping their stocks, are you still holding on with luck? I've seen too many people chase after high-flying coins, only to get trapped at the peak, crying while cutting losses; there's really no need to gamble with the market — opportunities are abundant, don’t gamble away your principal.
Use MACD to find signals, entering and exiting with clarity: Beginners shouldn't blindly look at a bunch of flashy indicators, just use MACD thoroughly! If the DIF line and DEA cross above the 0 axis, can it break through the 0 axis? This is a stable entry signal, go boldly; if a dead cross forms above the 0 axis pointing down, don’t hesitate, immediately reduce your position and run! I always check MACD before making trades, never rely on 'feelings' to make decisions, this way entering and exiting is solid.
Volume and price are essential, trading volume never lies: Suddenly breaking out after a long period of consolidation at low levels? Keep a close eye, this is a signal to start; if there’s high volume at a high position but no increase, or even a slight decrease? Hurry up and leave, the main force is cashing out! Trading volume is the 'truth' of the market, more reliable than any rumors, I’ve often relied on volume and price to escape peaks and avoid numerous crashes, this tactic can really help you avoid 80% of the pitfalls.
Only trade in rising trends, don’t waste time in garbage markets: The market doesn’t provide opportunities every day, I directly 'lie flat' in sideways and down markets! The 3-day line, 30-day line, 84-day line, 120-day line, as long as they are not upward, I won’t touch them no matter how tempting. Don’t think about 'grabbing every opportunity', it's better to make a profit in a rising trend than to mess around in a garbage market — time is also a cost, don’t waste your energy on unprofitable things.
Weekly reviews, timely corrections without stubbornness: I spend 1 hour every Sunday reviewing, checking the holding logic against the weekly K-line: Has the trend changed? Is the reason for entering still valid? If I find that the market and my judgment don’t match, I immediately adjust the strategy, reduce positions if necessary, and stop losses without stubbornness! I've seen too many people 'hold on to the end', turning small losses into big losses, and eventually clearing their accounts — reviewing is not a formality, it’s for correcting your trading mistakes, preserving capital is the priority!
Trading contracts is really not about betting high or low, but a probability game! Retail investors lose because they treat 'luck' as skill and 'feelings' as strategy. These 7 iron rules may seem 'stupid', but if you execute them well, you'll find that making money is actually a very 'boring' thing — no thrilling bottoms, no fantasies of doubling overnight, just steady profits.
Stop being the 'ATM' of the market! Follow me for more practical details: How to accurately judge trend reversals? How to set take profits and stop losses without getting swept by the main force? How to avoid 90% of the traps to lure in buyers? After all, in the crypto market, losing less is gaining, and steadily making money is better than anything else! Next time, let’s discuss the 3 most common tricks the main force uses to lure buyers, don’t miss it~
