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Contract trading is like walking a tightrope—one misstep and you could shatter into pieces, but if you get the right approach, you can also profit immensely from the waves. Some have turned 3,000U into 300,000U, not by luck, but by following those seemingly "rustic" yet deadly effective trading iron laws.
Traders who survive in the contract market never rely on flashy tricks. In this round of $BTC market, I’ve observed that successful traders follow a very simple and straightforward routine—strictly adhering to principles.
**Capital splitting is the first line of defense**
Divide your principal into 10 parts, investing only 1/10 of your capital per trade, and try with 100x leverage. What’s the benefit of this approach? If the direction is correct, a single point can double your profit; if wrong, a single loss won’t wipe out your entire account. This isn’t conservatism; it’s a necessary lesson for survival.
**Stop-loss is the only way to save your life**
The market is always right; only the trader can be wrong. Don’t expect rebounds, don’t bet on "maybe it will go up"—that’s suicidal thinking. When the trend turns, holding a position for one more second can multiply your losses. Executing a stop-loss is brutal: take the opportunity to exit, and if the market doesn’t give you face, just get out.
There’s a rule that has saved countless people: after five consecutive losses, trigger a circuit breaker. Turn off the software, leave the trading interface, and calm your emotions. Because once your emotions take over, you’re either trading emotionally or just giving money to the market. When you look again the next day, many initially blurry structures will become clear, and then it’s not too late to find opportunities.
**Lock in profits to secure gains**
Profit displayed as 3000U on the screen? That’s just virtual numbers, not real gains. At least withdraw half to your wallet—you’ll understand what “real money” means. The ultimate goal of contracts isn’t to prove with screenshots, but to preserve capital to keep participating in the game.
**Follow the trend, stay away from oscillations**
The market has two types of trends: trending and oscillating. Trends are like conveyor belts, taking you to your destination; oscillations are like a meat grinder, crushing everyone. If you don’t understand, wait. Wait until the structure is clear enough before entering. Missing a wave isn’t scary; staying alive is what allows you to participate in the next wave.
**Strict position management standards**
No matter how much capital you have, never risk more than 10% of your total funds on a single position. Using 30U for trial is acceptable, but only if you can afford to lose that 30U. Those who can make long-term, stable profits are not gamblers who go all-in on every trade, but disciplined traders who can survive and walk out of the gambling table.
**Treat contracts as a long-term battle, not a get-rich-quick show**
Once these rules are ingrained in your mind, and you learn to turn off emotional decisions, you’ll notice an interesting phenomenon: making money is actually just a byproduct. True skill lies in being able to stay seated, regardless of market fluctuations, to keep surviving and participating.
This is the ultimate logic of contract trading.