A Bloody Lesson! Playing contracts with my childhood friend, we tripled our investment in two days, only to lose it all in one day and gained realization.

I have a childhood friend, two years older than me, but he is not steady at all.

Recently, we both started trading contracts around the same time, initially making the same moves, following market trends to chase highs and lows.

Unexpectedly, we tripled our money in just two days, with our account rising from 5000U to 15000U. At that moment, we both felt euphoric, thinking contracts were a money-printing machine.

But before we could celebrate for long, we lost all our profits in one day and got liquidated, leaving only a few hundred U. That was when we fully awakened.

Afterward, we sat down to review our trades, and I realized how outrageous my actions were.

Contracts are essentially a magnifying glass; if you use 10x leverage, every fluctuation in the K-line is magnified 10 times, making you earn quickly but lose even faster.

After this lesson, we summarized four life-saving rules:

1. Monitor the funding rate closely; recently, the BTC funding rate remained positive, with longs paying shorts.

The entire network was bullish, but within a few days, it fell from 42000U to 39000U, which served as a warning sign of the top;

2. Leverage of 3-5 times is sufficient; beginners should avoid anything over 10x;

3. Operate in four steps:

First, observe the daily trend, enter when the four-hour chart retraces to the mid-band with increased volume, set a 2% stop loss, and take profits at 10%-20%;

4. Do not allocate more than 30% of your investment to a single coin; diversifying your portfolio provides a fallback.

In the crypto world, experts compete not on predictions but on control.

Being stable, patient, and waiting is essential for long-term survival.

Winning once is not difficult; the challenge is remaining at the table after ten fluctuations.

Those who can survive in the market and still earn are always the ones who dare to act first.

Are you ready? @bit福多多

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