“I blew up my account again!” This is the phrase I said the most in 2024. In one year, I blew up my account 17 times in the futures market, going from an initial capital of 100,000 to just 8,000 in the end, and my wife almost divorced me. During that time, I stared at the candlestick charts until dawn every day, unable to eat or sleep, losing hair by the handful. It wasn't until I completely gave up the 'gambler's mentality' and summarized a set of leverage trading rules that I slowly made back my losses. Now I trade with 5x leverage, maintaining a win rate of over 70%. Today, I’m sharing these life-saving techniques with you all; after watching, you can at least reduce your losses by 100,000 when you trade futures!
Beginners playing contracts are most likely to make three fatal mistakes:
First, blindly increasing leverage. Starting with 10x or 20x leverage, and getting liquidated with slight market fluctuations.
Second, not setting stop-loss orders, always thinking the market will pull back, resulting in deeper losses.
Three is frequent trading, buying and selling dozens of times a day, and the fees eat up all the profits.
I made all three of these mistakes at the beginning. I clearly identified the overall trend but, due to greed, I used high leverage. A slight pullback forced me to close my position, turning profits into losses. The most memorable time was when I was bullish on Bitcoin and used 10x leverage to go long. Suddenly, the market dropped by 5%, and I was directly liquidated. That day, I sat in front of my computer all night, without even the strength to cry.
Later, after deep reflection, I summarized a set of 'iron rules for leverage trading' that beginners can follow to avoid taking detours.
: First, the leverage ratio is linked to the principal. For a principal of 100,000 or less, use a maximum of 3x leverage; for a principal of 100,000 to 500,000, use 2x leverage; for a principal over 500,000, use only 1x leverage or even none. Leverage is a tool, not a gambling device; don't think of getting rich overnight with high leverage.
Second, strictly set stop-loss and take-profit levels. Determine the stop-loss level before opening a position, generally set 3% below the support level. Once it breaks, regardless of how painful it is, exit immediately; take profits in three stages: sell 30% when reaching a 1:1.5 risk-reward ratio, sell 40% when reaching a 1:3 ratio, and use a trailing stop for the remaining.
Third, only trade based on daily-level major trends. Don't mess around in hourly or minute charts, as those small fluctuations are not only hard to profit from but also carry high risks. I now only trade 1-2 times a week, capturing major market movements that align with both technical and fundamental expectations, making over 30% profits with each trade.
Many people ask me whether contracts can be traded or not. My view is: yes, but don't treat it as your primary way of making money. The core of contracts is to hedge risks, not to speculate for profit. If you can't even manage spot trading well, don't touch contracts; if you insist on trading, use small amounts to practice and engrave my iron rules in your mind. Remember, in the cryptocurrency world, preserving your principal is more important than anything else. Without your principal, no matter how big the market is, it has nothing to do with you.
Tomorrow, I will tell you 'how to identify the scams of signal callers' and expose how those so-called 'professional mentors' harvest new traders. Follow me to avoid the most disgusting tricks in the cryptocurrency world; after all, I've suffered losses and don't want you to go through it again. Success in the cryptocurrency world is never about gambling but about discipline. Follow me, and let you transform from 'chives' to 'scythe'!
If you feel helpless and confused in trading right now, and want to learn more about cryptocurrency-related knowledge and cutting-edge information, follow me@标哥说币
