Five key tips for making money with perpetual contracts, all summarized from painful experiences of losses:
Many people ask me: how can I steadily make money with contracts?
In one sentence: it's not about going all in, it's about the method.
The following five points are painful lessons I've learned from countless losses; once you understand them, you can avoid pitfalls:
1⃣ Never go all in; always operate in batches.
If your account has 20,000 USDT, you can lose a maximum of 20% (which is 4K), so this 4K should be divided into three parts:
The first 1K is for testing the waters, the second 1K is for averaging down, and the last 2K is your trump card for a comeback.
Don't go all in at once; if the market turns against you, you won't even have a chance to correct your mistake.
2⃣ Don't 'play nice' in front of trends.
Most people hesitate to chase when prices go up and hesitate to buy when prices go down; this is typical human behavior.
But trading is a game against human nature:
In an upward trend, you must be bold enough to enter when it drops 10%;
In a downward trend, don't fantasize about a rebound; it's safer to short along with the trend.
3⃣ Set your take profit and stop loss in advance; don't make decisions on the fly.
Always set your take profit and stop loss ahead of time; the market moves faster than your emotions.
✅ Single trade losses should not exceed 5% of total capital.
✅ Aim for profits greater than 5%.
✅ Maintain a win rate of over 50%.
As long as the risk-reward ratio is greater than 1, you will profit in the long run.
4⃣ Reject frequent trading; it's better not to trade than to trade recklessly.
Contracts are a 24-hour market, but that doesn't mean you have to be on edge 24 hours a day.
If the market is unclear, don't act; if you lose two trades in a row, take a mandatory three-day break.
Trading is not about who moves the most; it's about who makes fewer mistakes.
5⃣ Enter the market based on logic, not feelings.
It's best to observe before and after major positive or negative announcements, as it's easy to get caught in a trap;
The real good timing is after a big fluctuation when there’s a second bottom or top test;
If the price hasn't reached your level, don't act—no matter how crazy the candlestick or how much news there is, it's not worth the gamble.
Here are four key phrases for you:
✅ Diversify to control risk
✅ Go with the trend, not against it
✅ Set take profit and stop loss in advance
✅ Only enter at low risk
The last sentence:
The market is not about who wins quickly, but about who survives longer.
If you have ever experienced liquidation in contracts and jumped around repeatedly, feel free to like and save.