I have seen too many newcomers in the crypto space rush into the contract market with the illusion of "doubling overnight." Just a few days ago, they were still sharing profit screenshots, and not long after, they quietly disappeared—either deleting their accounts and running away or being completely wiped out by the market. To be honest, contracts have never been about who has the better luck or who is bolder; those who can walk away with a smile in the end are the ones who have engraved the word "discipline" into their DNA.
I myself am the best example. Ten years ago, I entered the market with a mindset of "taking a gamble," and within just two years, I experienced six liquidations. At my worst, I was almost unable to pay my rent. The feeling of watching my principal flow away like sand in an hourglass is something that those who haven't experienced it can't possibly understand. But it was precisely these six lessons of "breaking bones" that led me to create 10 life-saving iron rules, each accompanied by the pain of real money, which I share with you today without reservation.
1. These 10 iron rules helped me climb back from the brink of liquidation to the peak.
Always leave half of your position, ammunition is more important than opportunities: the market fluctuates every day, opportunities are always plentiful, but your capital is only available once. Every time you open a position, keep it below 50%; even if you encounter a black swan, there is still ammunition for recovery. I have seen too many people go all in, soaring when they earn, and going directly to zero when they lose; this gambler mentality cannot survive more than three days in the contract market.
If you make two mistakes in a row on the same target, turn around and walk away: If you misjudge twice in a row on the same cryptocurrency, don't get caught up in "Is the market targeting me?" The likelihood is that you are emotionally tied up. At this time, the best thing to do is not to stubbornly hold on but to stop and exit, calmly analyze where the problem lies; otherwise, you will only sink deeper into the same hole.
Do not touch orders without stop-loss: A stop-loss is the "life-saving talisman" of contract trading, no exceptions. Many people always think, "Just wait a little longer for a rebound," unwilling to part with that little loss, only to watch the loss expand and ultimately face liquidation. Remember, a small loss is a cost, liquidation is the end; learn to actively recognize losses to survive in the long run.
In a chaotic market, simply give up: If a cryptocurrency's trading volume fluctuates wildly and the candlestick structure is twisted, and you can't even understand the most basic trends, then just forget it. In this kind of "chaotic market," making money relies entirely on luck, while losing money becomes the norm; rather than going in as fodder, it's better to stay out and wait for clear signals to appear.
If you envy others' trades at a glance, exit immediately: "How did he make money again? Did I miss an opportunity?" Once you have such thoughts, it indicates that you have already become emotionally biased. Envy is a precursor to loss, and following others' actions is a big taboo; everyone's trading system is different, and blindly following the trend will only cost you your capital.
Trading is not about "clocking in at work"; if there are no opportunities, stay out: Many people feel uncomfortable if they do not operate for a day, always thinking, "Not trading is losing," and end up numbing themselves with a bunch of ineffective trades. In reality, staying out is also a strategy; patiently waiting for your own opportunity is a hundred times better than making blind trades. Frequent trading often results in significant losses from fees and dwindling capital.
When continuously losing, never average down: "If I add some more positions, I can lower the average price to break even" is the greatest trap of human nature. Continuous losses indicate that your judgment has already gone wrong; at this time, averaging down is not a "turnaround," but rather "leveraging to give away money." Stop, review and summarize, adjust your state, and you will have a chance to start anew.
If you don't understand trend structures, don't touch short-term trades: Short-term trading seems fast-paced with many profit opportunities, but it's essentially a "rhythm game." If you can't even understand support levels, resistance levels, and trend lines, even if you occasionally guess the direction right, you will still lose due to missteps in rhythm. Beginners who want to trade short-term should solidify their understanding of basic structural analysis first.
Opportunities are waited for, not created: Real market movements are never "found" but rather "waited for." When a market is about to move, candlesticks, volume, and indicators will provide clear signals, shining like searchlights. Those who stare at the market every day "looking for opportunities" often end up getting cut repeatedly in fluctuations.
Daily review of three things: the logic of entry, the reasons for exit, and emotional state: Reviewing is not just a simple glance at profits and losses; it is about understanding "why I entered this position" and "why I exited at this point" and whether emotions affected my trading. Only by clarifying the details of each operation can one avoid making the same mistakes next time. I have insisted on reviewing for ten years, and now I can even close my eyes and recount where my operational issues were in the past week.
2. The essence of contract trading: competing with oneself.
After ten years of ups and downs, my deepest insight is: contract trading is not about competing with the market but rather competing with oneself. No matter how cunning the market is, there are rules to follow; however, human nature's greed, fear, and luck are the most terrifying enemies.
Many people think, "I have a good talent and can make money by feeling it out," but in reality, talent is worthless in the face of discipline. You might make money once or twice by luck, but to achieve long-term stable profits, you must rely on self-discipline. Those who can thrive in cryptocurrency contracts are not those who haven't lost, but those who turned losses into lessons, lessons into discipline, and finally used discipline to overcome human nature.
The current market environment is actually a very good time for "practice" and "recovering losses." The Federal Reserve's policy shift has brought expectations of liquidity easing, and market sentiment is gradually warming up, but volatility still exists. At such times, it is precisely the best moment to test one's trading discipline—if you maintain discipline, you can seize opportunities amidst the volatility; if you can't maintain discipline, you will only incur repeated losses in fluctuations.
Third, let me say something from the heart.
If you are still struggling in the contract market, don't rush, and don't lose heart. Liquidation is not the end; as long as your capital is still there and you are willing to summarize lessons, there is still a chance for a turnaround. But the premise is that you must let go of the fantasy of "getting rich overnight" and treat the word "discipline" as your faith.
