Want to trade contracts without losing money? The core logic is simple: only engage in certain market conditions, manage risks with discipline, and profits will naturally follow.
1. Core principles of contract profitability
Only trade the 'leading duo'
Focus on Bitcoin and Ethereum, avoid highly volatile altcoins, and reduce uncontrollable risks from the source.Trends are your friends
The trend is down, prioritize short positions; the trend is up, prioritize long positions. Only consider short-term chasing of hot spots when the major trend is clear and the market is stable.Eliminate the 'get rich overnight' mentality
Never go all in, never over-leverage, avoid holding positions overnight. The market is thin on weekends, firmly control your hands and do not open positions.Only earn money within your understanding
Learn to stay out and wait; do not force trades. Only trade in situations you understand; if you don't understand, take a break. The market does not lack opportunities; it lacks patience.
2. Precise entry and strict stop loss
1. Entry point judgment
Short position: Observe the 4-hour level; if the price is consistently suppressed by important moving averages (e.g., MA60) above, it can be seen as a signal to gradually build short positions.
Long position: Near clear support levels on the 4-hour or higher time frames, look for stabilization signals and gradually build long positions.
2. Stop loss setting
Technical stop loss: Refer to the previous low/high after a 'spike'. For example, if the support level is 2220 and it spikes down to 2210 but quickly rebounds, you can set the stop loss below 2210 (e.g., 2200).
Capital stop loss:
Strictly control a single loss to 1%-2% of total capital.
If the cumulative drawdown reaches 5% in a single day, immediately stop trading and close the software.
Profit protection stop loss: If the market moves favorably after opening a position and the candlestick pattern is not broken, you can temporarily avoid moving the stop loss to allow for profit space.
Three, must adhere to operational discipline
Gradual entry: Never fill the position all at once; build positions gradually to smooth costs and risks.
Limit frequency: No more than 2 transactions per day to reduce emotional interference and decision-making errors.
Profit and loss ratio priority: Aim for a profit and loss ratio of more than 3:1, ensuring that one profitable trade can cover several small stop losses.
Responding to extreme market conditions: Do not panic when faced with a market crash; either stay out and observe or only gradually 'catch the needle'; if there are no certain opportunities, continue to wait.
Daily review: Reflect on the day's operations before bed, summarize gains and losses, and plan the next day's strategy. Do not revenge trade after a stop loss; do not carry emotions into the next trade.
If you feel your account is always stuck and you trade hesitantly, it often means you have not yet established your own stable trading rhythm. The market is always there, and opportunities appear repeatedly. Sometimes, you may only be one system away that helps you maintain your mindset and execute strictly from continuous profitability.
