In the cryptocurrency industry, which is full of opportunities and challenges, contract trading is like a double-edged sword. If used properly, it can bring great rewards, but if not used carefully, it may lead to losses. If you are in the dilemma of contract losses, then the following key points that have been tempered by actual combat will become the cornerstone for you to turn things around and move towards profitability.



1. Accurately control stop-profit and stop-loss - the survival foundation of trading
Stop profit and stop loss are the core skills of contract trading, and their importance cannot be overemphasized. The market situation is like the ever-changing wind and clouds, changing in an instant. The rise and fall of the currency price follows the inherent cycle law, whether it is rising or falling, it will not be endless.
Taking profit is essentially an effective constraint on one's own greed. When the contracts in hand have reached a certain level of profit, you must restrain the impulse to chase higher profits. Do not regret missing subsequent gains due to closing positions too early; remember that wealth in the cryptocurrency market is like a vast ocean, impossible to capture entirely, but the funds in your account may quickly vanish due to greed.
Setting a stop-loss is a wise decision to bravely face and decisively abandon sunk costs. Many people often have a sense of luck in trading, believing that if they just hold on, the market might reverse. However, this idea is often fatal. Once the market trend contradicts expectations, admitting mistakes and promptly setting a stop-loss is the wise course of action. Although it may feel painful like losing an arm, it can preserve the principal at a critical moment, keeping the flame for future trades.
Additionally, when opening a position, ensure that you have sufficient volatility tolerance. Even if the directional judgment is correct, if the tolerance point is too low, a slight price fluctuation may lead to forced liquidation, missing subsequent profit opportunities, just like being easily thrown off a speeding train due to an unstable stance.
II. Abandon the habit of frequent trading - the key to stable profits
Frequent trading is a big taboo in contract trading. Many people fantasize about accurately profiting from both long and short positions, achieving so-called 'double eating,' but this is no different from a fool's dream. In actual trading, being able to accurately grasp a one-sided market is already difficult, and one should learn to be content.
Moreover, frequent trading also comes with the pressure of high transaction costs, especially in the case of high leverage, where each trade may instantly incur a loss of 1 - 2 points in profits. Therefore, each trade should be carefully weighed to ensure a significant probability of profit; otherwise, such trading is no different from blind risk-taking and is of no value.
III. Cultivate the state of being in cash - the art of waiting for the right moment
When the market is obscure and the trends are unclear, controlling your hands and choosing to stay in cash is a high-level trading wisdom. Some may feel reluctant to miss out on the market, but think carefully; missing out only brings temporary psychological loss, while blindly entering the market can lead to real financial losses. Trading recklessly when you cannot understand the market is no different from pure gambling.
The essence of trading lies in grasping the probability advantage; no one can accurately predict the rise and fall of cryptocurrency prices, as the speed of market changes is beyond imagination. What we can do is, based on various technical analyses, market news, and experiential judgments, roughly assess the likelihood of market rise or fall, and thus make relatively reasonable decisions.
It is worth mentioning that nowadays, leading exchanges have set up copy trading areas. For those investors who lack confidence in their trading decisions and often make directional errors, this is a path worth trying. However, it is essential to note that copy trading does not mean blindly following; choosing an experienced and stable trader is crucial, which requires time and effort to research and filter.
IV. Follow the principle of gradual progress - a stable path to wealth accumulation
In cryptocurrency contract trading, the mentality of being eager for quick success and trying to get rich overnight is dangerous. Profit from trading is a gradual process that requires patience and perseverance.
Taking a small principal as an example, if you use 100 as the principal to open a long position with 10 times leverage, the position value becomes 1000. For every point increase, you can earn 10 yuan. If it rises by two points, you will have 20 yuan in profit, easily earning money for breakfast. Compared to earning 15 yuan per hour working in a factory, if you can accurately grasp the timing of opening positions every day and maintain a win rate of 60% - 70%, the trading profits are obviously more considerable and easier. This gradual accumulation method not only effectively reduces risk but also allows you to continuously gain experience and confidence during the trading process, laying a solid foundation for larger-scale trading in the future.
V. Firmly resist the temptation of high leverage gambling - safeguard the bottom line of wealth
High-leverage gambling is undoubtedly a time bomb in contract trading. Once it explodes, the consequences are unimaginable. Even if the market initially develops as expected, the cryptocurrency market is greatly influenced by various news, and a sudden major news event can instantly reverse the situation, causing the market to plummet.
If at this time you fail to set a stop-loss due to greed or negligence, what awaits you will be the misfortune of liquidation, with your account funds disappearing in an instant, potentially triggering a series of negative chain reactions that lead you into deeper financial trouble. Therefore, at all times and in all places, you must maintain a clear mind and calm judgment, keeping away from the dangerous game of high-leverage gambling.
Especially after a liquidation, people's emotions often go out of control, and the desire to recover losses becomes increasingly strong. At this time, it is more important to let rationality prevail and avoid making impulsive decisions. For example, the contract cooldown feature provided by the OKEx platform is a good tool. When you feel emotionally unstable and may make irrational moves, it is advisable to enable this feature to give yourself some time for calm reflection. Understand that the cryptocurrency market is never short of trends and opportunities; for the next 10 or 20 years, the market will continue to exist and evolve. As long as your principal remains, there is always hope for profit.
VI. Adhere to the concept of unity of knowledge and action - overcoming the challenges of human weaknesses
Unity of knowledge and action seems simple, but it is actually the most challenging hurdle in the trading field, even experienced traders often find it difficult to fully achieve. Weaknesses such as fear, greed, and luck in human nature will constantly interfere with our decisions and execution during trading.
We often make meticulous plans before trading, but when the market actually arrives, we are unable to strictly follow the plan due to various inner emotions. For example, a stop-loss was originally set, but as the market approaches the stop-loss, one might hesitate to execute it due to a sense of luck, ultimately leading to increased losses; or after reaching the profit target, greed prevents timely profit-taking, resulting in a market reversal and profit loss.
To overcome these human weaknesses and achieve unity of knowledge and action, long-term self-cultivation and reflection are needed. This can be done by keeping a trading journal, summarizing experiences and lessons learned, continuously strengthening one's emotional control ability, and gradually making rational decision-making a habit in trading.
The path of trading in the cryptocurrency market is full of thorns and challenges, but as long as you deeply understand and strictly follow these key rules, continuously learn and practice, draw lessons from failures, and accumulate experience from successes, you can hope to achieve steady profits in this opportunity-filled market and change your financial destiny.
In the future, as the market continues to develop and change, we need to continuously pay attention to various new situations and new trends, constantly optimizing and perfecting our trading strategies and methods, and always maintaining sharp market insight and flexible adaptability. At the same time, during the trading process, learn to communicate and share experiences with other traders to form a positive trading community atmosphere for mutual growth and progress.
If you feel confused and lonely in trading, feel free to follow me. I will share potential spot layouts and bull market strategy layouts with you daily to help you move steadily forward in the wave of the cryptocurrency market.

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