Only when profits are protected can it be called earning; otherwise, it is just paper wealth.
Recently, many fans have asked me the same question: Should contract trading be short-term or long-term? Every time I see such a question, I think of the seven mathematical fees I once paid.
The market has always debated this issue, but the truth is: the cycle is not the key; protecting profits is the core. Today, I will share my practical experience on this eternal topic.
1. The thrills and traps of short-term trading
Short-term trading, especially ultra-short-term, is indeed very tempting. You can see returns within minutes, giving people the illusion that 'quick money is easy to make.'
I used to be a short-term fanatic, trading dozens of times a day, staring at the K-line until three in the morning. At that time, I thought I was great, catching every small fluctuation. But after a month, I realized that transaction fees and slippage costs consumed most of my profits. Even scarier, this kind of high-frequency trading can trap you in a vicious cycle of emotional decision-making.
Short-term trading has requirements for personality: those who are quick to react, decisive in decision-making, and can withstand immense psychological pressure may be more suitable. But even so, one principle must be followed: set strict stop-loss points. Once a judgment error occurs, exit firmly and do not cling to the battle.
2. The agony and rewards of long-term trading
Long-term trading seems simple; it's about buying low and holding for a long time, but in practice, it tests human nature significantly.
I know a brother who truly made a lot of money from contracts, holding onto Bitcoin contracts for a full year without moving. During that time, he experienced three pullbacks of over 40%, but he held firm. In the end, he made nearly ten times his investment.
Long-term trading does not require frequent operations, but it requires immense patience and faith. When market sentiment is high and your account profits are growing daily, can you resist closing positions early? When prices retract significantly and profits shrink by half, can you remain calm?
Long-term traders pay more attention to fundamental factors and big trends, and are not disturbed by short-term fluctuations in their judgments. This trading style is suitable for those who have patience, can think independently, and are not easily influenced by market noise.
3. The middle path I found
After years of exploration, I found that purely short-term or long-term is not perfect. Now my strategy is: core positions long-term, satellite positions short-term.
Specifically, I divide my funds into two parts: 70% for long-term trend tracking and 30% for short-term volatility trading. This way, I won't miss the big trends while maintaining market sensitivity.
More importantly, I have established a mechanism to protect profits:
Once any position's profit reaches 30%, immediately withdraw half of the profit to a cold wallet;
Set half of the remaining amount to break-even stop-loss, allowing profits to continue running;
Daily trading has strict time limits to avoid overtrading.
4. Mental training is the ultimate weapon
Trading in the end is actually a psychological game.
The anxiety of missing out, the impatience after profit, and the panic after losses—these emotional hurdles have no shortcuts; they can only be honed through repeated practical experience.
I now only spend a small amount of time each day watching the market. I act when signals arise and shut down when they don't. Reducing the frequency of watching the market has significantly improved my decision-making quality.
Conclusion: Find the rhythm that suits you
Returning to the initial question: should contracts be short and quick or long-term? My answer is: decide based on your personality, capital scale, and available time.
If you have ample time, quick reactions, and can withstand pressure, you can focus on short-term; if you have patience and don't want to be bound by the market for life, long-term may suit you better.
But no matter what, please remember: there are no losses from 'missing out' in the market, only real gains and losses in cash. Instead of getting tangled in cycles, it's better to first learn to protect profits.
The real difficulty is not the technique, but the mental training. Being able to grasp the nuances of trading is already much better than those who trade blindly and chaotically. But to survive long-term in this market, establishing your own trading system and strictly executing it is key.
I hope everyone can find a trading rhythm that suits them, not trading for excitement but for stable profits. Follow Xiang Ge to learn more about firsthand information and cryptocurrency knowledge at precise points, becoming your guide in the crypto world; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
