When it comes to contract trading, many people's minds are only two words: huge profits. But more often, that's a synonym for liquidation.

Why can some people steadily grow their positions in mainstream coins like $ZEC, while others lose everything? The key isn't how accurate market predictions are, but how risk is managed.

**Take Profit Lock: Making Profits No Longer Just Paper Wealth**

Imagine this scenario: You open a ZEC contract position, and your unrealized profit reaches 10% of your principal. What should you do now? Many choose to add more to the position, chasing bigger gains. But with a sudden spike, the previous profits can vanish instantly.

A more prudent approach is to lock in profits in stages: when unrealized gains reach 10% of your principal, immediately withdraw 50% of the profit to a cold wallet. The remaining 50% continues to roll over, but now you're rolling only the profit, not the original principal. The benefits are obvious—when the market is favorable, enjoy the power of compound growth; if the market suddenly reverses, you only give back half of your profits, keeping your principal stable.

This logic seems simple, but executing it requires discipline. Many veterans have seen their accounts drop from hundreds of thousands to just a few thousand, often because they didn't stick to their take-profit plan firmly.

**Dislocation Positioning: Finding Certainty in Oscillations**

The market spends 80% of its time oscillating and 20% trending. If you only bet on a one-sided trend, you'll eventually hit a mine. A smarter approach is to observe multiple timeframes simultaneously:

- Use the daily chart to determine the main direction.
- Use the 4-hour chart to identify fluctuation ranges.
- Use the 15-minute chart for precise entry points.

This multi-timeframe analysis helps filter out many false breakouts.

For the same coin, you can set up two orders:
- Order A: chase long when key support is broken, with a stop loss at the previous low on the daily chart.
- Order B: place a limit short in the overbought zone on the 4-hour chart.

Both orders should control stop-loss within 1.5% of your principal, but aim for a take-profit of at least 5 times that. Under such a setup, when the market spikes in both directions, others' liquidation orders become your opportunity to withdraw profits.

**Stop Loss as Opportunity: Using 1.5% to Gain Big**

Many traders see stop loss as a failure. In reality, precise stop loss is the ticket into the trade. A small 1.5% loss can give you a complete trading cycle—if you get stopped out, others who refuse to stop lose everything. When the market reverses and continues in the direction you believe is correct, the opportunity arises.

After setting a stop loss, learn to adjust your take-profit flexibly. When the market is trending, use trailing stops to let profits run; when the market turns, cut your losses decisively. This isn't greed—it's respect for market risk.

**Simple Method, Counter-Human Execution**

By now, some might think: Isn't this just basic risk management? Exactly, it's that simple. But very few can stick to it. When you see your account approaching stop-loss levels, or others doubling their money with all-in bets, emotional fluctuations will tempt you to break the rules.

Next time you're impulsive, remember: the market is always there, opportunities are always present, but recovering from a liquidation takes a long time. Instead of gambling, use discipline to achieve stability.