Once upon a time, I was also the one chasing the myth of 'tenfold overnight' gains. At three in the morning, I would still be fixated on the candlestick chart, my account balance fluctuating like a roller coaster, only to end each day with the sigh of liquidation.
It wasn't until I lost 70% of my principal due to three consecutive liquidations that I suddenly realized: in this market, lasting longer is more important than earning quickly. Now, I navigate the minefield of altcoin contracts safely with three self-created military rules. Although I no longer experience the madness of tenfold gains in a single day, my account has maintained steady growth for five consecutive months.
Right-side breakout: Refuse the temptation to catch the bottom.
I will always remember my first attempt to catch the bottom of a popular meme coin. At that time, it had dropped 60% from its peak, and I thought I had found a bargain, but it continued to drop by 90%, and ultimately my contract was forcibly liquidated.
From then on, I understood a principle: altcoins have no value anchor, only emotional premiums.
Catching a falling knife in a downtrend is no different from catching a flying knife with bare hands.
Now, I only enter the market after confirming a breakout. There are two key judgment criteria for specific entry signals:
Firstly, the price must break through key resistance levels with volume, such as the MA60 moving average on the daily chart, which indicates a substantial shift in market sentiment.
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Secondly, one needs to wait for a pullback confirmation after a breakout to avoid the trap of false breakouts. Only when the price retraces without breaking the previous high can the validity of the breakout be confirmed.
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Although this strategy means a higher entry cost, it significantly increases the win rate. Cheap chips often come at a greater cost, while expensive chips can bring steady returns.
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Position control: The survival wisdom of the 2% rule.
In altcoin contract trading, position control is not optional but a necessity for survival. I strictly adhere to the rule of 'no single position exceeding 2% of total margin.'
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Why 2%? This number is carefully calculated: even if I lose 20 times in a row, my principal will only draw down about 35%, which won't damage the foundation. The high volatility of altcoins is enough to yield considerable returns from a 2% position.
In the specific operation of position management, I adopt a phased scaling strategy. When breaking through, I first invest 1% for a test trade, confirm the trend, and then add another 1%. The total position will never exceed the red line of 2%.
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This conservative position strategy has allowed me to survive several black swan events. I remember a certain altcoin went to zero overnight because the project team ran off in March this year. Because I always adhered to the 2% position limit, that loss was completely within a controllable range.
In the process of using small funds to seek large returns, surviving is far more important than how much profit I make in a single trade.
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Three-day discipline: Time is the best loss-cutting tool.
In my trading system, there is an iron rule: after establishing a position, hold it for a maximum of 3 days.
No action in three days? Walk away. Market volatility in three days? Walk away. If the market does not provide returns, it is a mistake.
This 'three-day discipline' originates from my understanding of the characteristics of altcoins: truly strong coins usually surge quickly after entering the market, while those that remain stagnant often indicate insufficient momentum.
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In practice, I set three stop-loss standards:
Price stop-loss: Set a hard stop-loss 3% below the entry price; this is the last line of defense.
Time stop-loss: If there is no profit or significant volatility within 72 hours, exit unconditionally.
Emotional stop-loss: When I find myself overly focused on a certain coin, I will reduce my position even if I am in profit.
The most dangerous aspect of short-term trading is not the losses but the shift from short-term to long-term, ultimately leading to deep entrapment. In my trading journal, 90% of major losses stem from violating the three-day discipline.
Mindset management: The real battlefield of contract trading.
Technical analysis is easy to learn, but mindset control is difficult to master. In contract trading, the importance of mindset management even surpasses technical analysis.
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I set a self-imposed emotional circuit breaker: if daily losses reach 5% of my principal, I will forcibly pause trading for 24 hours; if there are losses for three consecutive days, I will cut my position in half; if monthly drawdown exceeds 15%, I will comprehensively review my trading strategy.
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At the same time, I have also learned to accept imperfection. Do not try to buy at the lowest point and sell at the highest point; no one in the market can accurately capture every fluctuation. My goal is to capture the most certain segment of the trend, just like eating only the body of the fish, leaving the head and tail to others.
Real contract trading is not about fighting the market, but dancing with your own greed and fear.
When you can calmly execute your trading plan, unaffected by short-term fluctuations, you have already surpassed 90% of traders.
When another altcoin surged 300% in the middle of the night, my phone vibrated continuously. The group chat was filled with shouts of 'financial freedom' and 'waiting a thousand years for this moment.'
I silently set the take-profit order and then turned off the screen. A true trading expert does not seize every opportunity but abandons 99% of uncertainties, focusing only on 1% of certainties.
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After all, in this market where 90% of participants ultimately become fuel, merely surviving is already a victory. #山寨币热点 If you find yourself confused in a position and don't know how to operate, follow me. I'll use practical experience to help you avoid pitfalls, firmly protect your principal, and gradually earn profits!
