Perpetual Contract Money-Making Tips
1. Avoid Full Margin Trading, Allocate Funds Reasonably
Perpetual contracts should not be fully leveraged. Fund allocation must be done well. First, you need to understand the maximum loss you can tolerate; this is the basis for your fund allocation. Once you determine this number, think about how many times you should enter the market at a minimum. My suggestion is to at least divide it into three operations. For instance, if your account has 200,000 in funds, with a maximum allowable loss of 20%, which is 40,000, the most aggressive operation should be: lose 10,000 the first time, lose 10,000 the second time, and lose 20,000 the third time. This way, even if the first two attempts fail, you still have a chance for the third, ensuring you aren't kicked out of the market directly. As long as there are still opportunities, the chance will naturally arise.
2. Grasp the Big Trend, Trade with the Trend
Although trading in a trending market is challenging, it is crucial for making money. In a trend, chasing highs and selling lows requires discipline; while trading in a volatile market may align with human nature, it often leads to losses. Remember, during an upward trend, any significant pullback is a buying opportunity. If you miss the initial wave, be patient and wait until the price retraces 10-20% before entering; the probability of success will be greater.
3. Set Profit and Loss Limits, Control Risks
Setting profit and loss limits is key to profitability. Your goal is to ensure total profits exceed total losses. Follow these points:
- Each loss should be controlled within 5% of total funds;
- Each profit should exceed 5% of total funds;
- Maintain a win rate of over 50%.
In this way, if your profit-loss ratio is greater than 1 and your win rate exceeds 50%, you can ensure you are overall profitable. Even if the win rate is slightly lower, as long as the profit-loss ratio is high, you can still be profitable in the end.
4. Avoid Overtrading
BTC perpetual contracts are traded 24/7, and many newcomers want to trade every day, often resulting in losses. Frequent trading can easily lead to a bad mindset, resulting in “revenge” trading; heavy positions and trading against the trend will only increase your losses. Trading requires a calm mindset; don’t let the market dictate your pace; preserving profits is the most important.
The core of trading perpetual contracts is to control risks, trade with the trend, and maintain composure. Opportunities are always present, don’t let your mindset ruin your trading.
