Entering the crypto world, contracts are not a magic remedy!
When first entering the crypto world, many people see contracts as a quick shortcut to financial recovery, diving in and making frantic trades, resulting in losing all their capital and shattering their dreams of recovery.
In fact, contracts are not a treasure for making money; they are more like a "filter" that determines who can survive in this harsh market. After years of trial and error, I have summarized four rules for survival.
First, do not over-leverage your position. No matter how enticing the market looks, going all-in is like betting your assets against volatility. Most people don't choose the wrong direction; they get shaken out by the fluctuations.
Leave some room for yourself, give yourself two or three chances to make mistakes, so you can last longer.
Second, go with the trend. Don't always think about bottom-fishing or trying to catch the top; making small profits in a volatile market is not very useful.
What can really earn big money is a trending market: a pullback in an upward trend is a good time to enter, and a rebound in a downward trend is a signal to exit. If the trend hasn't changed, don't stubbornly hold on.
Third, be decisive with profit-taking and stop-loss. Many people get greedy when they are profitable, stubbornly dragging their profits away; when they are losing, they take chances, holding on until liquidation.
Remember, losses should be small, profits should be big, stop-losses should be decisive, and profitable trades should be given more space.
Fourth, reduce the frequency of trading. Making dozens of trades in a day mostly just pays for transaction fees. The more trades you make, the more chaotic your mindset becomes.
A single loss can easily lead to emotional instability, and the more you try to recover, the worse it gets. Steady and measured, two or three trades a day are sufficient.
These four rules are not techniques; they are the bottom line for survival. Those who can adhere to them will be able to stand the test of time in the crypto world; those who cannot will find the market to be a meat grinder.
First, make sure to follow these four rules; when the market conditions improve, you will then have the qualification to join the game.