At three in the morning, the flashing liquidation notification on my phone illuminated my face drenched in cold sweat—this was the third time in three years experiencing a total loss.
The first time I was liquidated, I stubbornly believed that "if I just wait a bit longer, it will bounce back," only to watch helplessly as my account dropped from five digits to two. The second time, I acted like a desperate gambler, throwing all my salary in to try to recover, but I was liquidated again during a market shake. After the third liquidation, I lay in bed staring at the ceiling and finally understood one principle: in this market, staying alive is more important than anything else.
Now I have summarized these lessons into three iron rules, hoping to help you who read this article avoid some detours.
1. The stop-loss line is a lifeline; if you lose 15%, you must cut it.
In the early days of trading, like most people, I hated stop losses and always thought, 'It will rebound immediately.' Once, I heavily invested in a popular coin, holding through a 5% loss to a 25% loss, and finally being forced to close my position when margin was insufficient.
It was only later that I understood setting a stop loss is not about admitting defeat but preserving chips for the next opportunity. Now I have established a strict rule for myself: any trade loss reaching 15% means I exit unconditionally.
Some people may ask: 'What if it rises right after I sell?' My answer is: If this coin is truly that good, you can re-enter after the trend becomes clear. Risking a 15% loss for an uncertain rebound is not worth it. Opportunities are always more abundant than capital; do not fall in love with a wrong position.
2. Profit only belongs to you once it is realized.
When I first started trading contracts, I often fell into the trap of being 'paper-rich'. There was a cryptocurrency where I once had a 40% paper profit, but because of greed and not taking profits, I ended up losing money.
Now I have learned to take profits in batches: be cautious when it rises by 10%, and take half of the profit when it rises by 20%. Although this may cause me to miss higher returns, it ensures that profits are secured.
The harsh truth of the contract market is that before realizing profits, all gains are just numbers. I have seen too many people go from significant profits to losses, simply because they couldn't bear to take profits. Remember, the market always has opportunities, but when the principal is gone, you really have nothing left.
3. In a fluctuating market, hold your hands; when a trend comes, hold on tightly.
Most of the time, the market is in fluctuation, and true trend markets are rare. Frequent trading in a fluctuating market not only fails to make money but also incurs significant fees.
I now spend most of my time on the sidelines, only taking action when high-certainty opportunities arise. Once I seize the trend, I dare to let profits run.
Being in cash is itself a trading strategy. Many people find being in cash more uncomfortable than losing money; this is typical gambler psychology. Truly excellent traders spend most of their time waiting, only grabbing one or two high-certainty opportunities a year.
These three iron rules are actually based on the same principle: control risk and stay alive. The contract market is not about who makes money faster, but who survives longer.
After experiencing three lessons from liquidation, I lowered my leverage from an initial 20 times to the current 3-5 times. It seems to earn slowly, but the account net value has steadily increased. This is the essence of contract trading: slow is fast, and less is more.
I hope my experience can help you avoid some pitfalls. Remember, in this market, those who survive have already won against most people. Follow Xiang Ge to understand more first-hand information and cryptocurrency knowledge, precise points, and become your guide in the crypto world; learning is your greatest wealth!
