Strictly adhere to discipline to survive for a long time.
Many people shake their heads as soon as they hear about contract trading, calling it gambling and a meat grinder. But in my brother Bin's view, contracts are actually a cash machine; the key is to understand how to operate it.
I have seen too many people come in and heavily invest all at once, resulting in a margin call at the first fluctuation. There are also friends who start with small profits, then become complacent, increase their leverage, and ultimately give back profits and even lose their principal. After countless sleepless nights and painful lessons, I have summarized this set of practical mindset techniques.
01 Trading Target Selection: Only play the mainstream, stay away from minor brands.
Many beginners like to engage in altcoins, thinking that they have large fluctuations and can make money quickly. But this is precisely the most dangerous place. The spike market of altcoins is specifically prepared for retail investors, and if you are not careful, you'll get stuck.
My principle is very simple: only trade BTC and ETH, and I hardly look at others.
Why? BTC is the barometer of the entire crypto market, with the best liquidity and relatively stable trends. As the second largest cryptocurrency, ETH has greater volatility than BTC, but its liquidity is also good, making it less susceptible to manipulation by single funds.
Last year, there was a period when altcoin markets were booming, and many laughed at me for being conservative. As a result, after a wave of policy adjustments, those soaring altcoins dropped 50% in one day, and many people faced liquidation, while I relied on the stable performance of BTC and ETH, not only avoiding a sharp decline but also seizing the rebound opportunity.
Liquidity is your safety cushion. In extreme market conditions, mainstream coins at least give you a chance to escape, while altcoins may go directly to zero.
02 Core Trading Skills: Understand the Language of the Market
Moving averages are one of my favorite indicators, especially MA60. On the 4-hour level, if the price attempts to break through the MA60 line for the third time but fails, this is a high-probability short signal. At this moment, I will decisively enter the market, setting the stop loss a bit above the previous high.
Bottom fishing is not catching falling knives. Many people rush to enter the market when they see a drop, only to end up buying halfway down. My real bottom-fishing signal requires two conditions: first, the price touches the previous low support level on the daily chart; second, the RSI indicator shows oversold (below 30).
The relationship between volume and price is key. A true breakout will definitely be accompanied by an increase in trading volume; if the price reaches a new high but the volume does not follow, it is likely a false breakout, at which point I will open a reverse position.
Last month, I used this trick to uncover a false breakout: BTC suddenly surged rapidly to reach a recent high, but the trading volume was obviously insufficient. I decisively opened a short near the key resistance level, and as a result, the price quickly fell back, earning me nearly 5% profit from this trade.
03 Capital Management: Surviving is the hard truth
Position management is my core secret. I always stick to the 'three-three system' opening method: the initial position should not exceed 5% of total capital, and after confirming the direction is correct, I increase my position gradually, with decreasing amounts each time.
The benefit of doing this is that even if the judgment is wrong, the loss is still within a controllable range.
Stop losses are a lifeline. I set a strict rule for myself: if daily losses reach 20% of the principal, I immediately stop trading, shut down the computer, and return to fight another day. This rule has helped me avoid multiple fatal blows.
Trailing stop losses let profits run. Once profits exceed 50%, I adjust the stop loss to above the break-even point, and then update the trailing stop loss every five minutes, which allows me to protect the principal while capturing the major trend.
Profit withdrawal is the ultimate guarantee. I stipulate that I must withdraw 50% of my profits each month, and this part of the money is transferred to a cold wallet, never to be used for trading again. This rule ensures that my hard work does not go back.
04 Mindset Management: Practical Insights for Battling Inner Demons
If there are two consecutive stop losses, you must stop. This is not a market issue, but a mindset issue. At this time, the best choice is to leave the market, take a break for a few hours or even a day, and return when your mind is clear.
Do not engage in revenge trading. After a loss, focusing only on recovering losses often results in even greater losses. Losses are a part of trading; accepting them is the only way to overcome them.
I have a habit of recording the reasons for opening positions, closing results, and emotional states after each trade. This helps me identify my trading patterns and avoid repeating mistakes.
05 Opportunities in the current market
The market is currently in a sideways consolidation phase, which is a golden period for false breakout strategies. In the past three days, I have used this method to catch three waves of market movement:
Breaking through previous highs but with insufficient volume? Go short! Breaking below previous lows accompanied by panic selling? Directly go long on the false breakout!
In this market situation, patience is more important than technique. If you are not sure, just observe; opportunities are always there, and it is not necessary to participate in every fluctuation.
The longer the sideways trend lasts, the greater the subsequent breakout strength. I am currently holding a light position and observing; once a volume breakout signal appears, I will decisively follow up.
Conclusion: The secret to stable profits
Contract trading is not gambling but a probability game. What I pursue is not to win every trade, but to have overall profitability. Nine wins and one loss are completely acceptable; the key is to control the extent of that one loss.
A true expert is not defined by how accurate their entry points are, but by their ability to cut losses in time when wrong and to let profits run when right. The biggest fear of big players is that you strictly adhere to discipline, neither greedy nor fearful, and take steady steps.
In the current market, it is a good time to learn and apply these strategies. When the next big market wave comes, I hope you can dance with the big players and reap your own profits.
Opportunities are always reserved for those who are prepared. If you can understand and execute these principles, I believe that soon, contracts will also become your ATM. Follow Bin Ge to learn more first-hand information and precise points in the cryptocurrency world, becoming your guide in the crypto space; learning is your greatest wealth!#ETH走势分析 #达沃斯世界经济论坛2026 $ETH
