$BTC Cryptocurrency Contract Core Trading Insights
The core of contract trading is "survival first, profit second." Remember the following key points to ensure steady and long-term success:
1. Ironclad Risk Control: Always set stop-loss orders when opening a position to avoid taking chances; this is the bottom line for survival. Position management is crucial, and a single position should not exceed 10% of your capital; refuse to gamble with heavy positions.
2. Follow the Trend: Always trade in the direction of the main trend; do not go against the trend by trying to guess tops and bottoms. In an uptrend, primarily go long; in a downtrend, primarily go short.
3. Strategy First: Aim for a high risk-reward ratio (above 1:2); it is better to take small losses for the potential of large gains. After realizing floating profits, learn to use trailing stops to protect profits and secure gains.
4. Maintain Patience: Most of the time, it is better to stay out of the market and observe, like a cheetah waiting for high-probability and high-certainty opportunities, avoiding frequent trading.
5. Mindset Management: Overcome greed and fear. Do not strive to buy at the lowest point or sell at the highest; do not rush to recover losses after a downturn, and strictly follow your trading plan.
Finally, remember: Contract trading is extremely risky; seven parts rely on mindset, two parts on risk control, and one part on technique. Independent analysis, staying away from data trends and blind following, is essential for long-term survival in this market.
