Regarding contracts, I know you are all curious, but as an analyst with some years of experience in this field, my opening line will always be: beginners, please stay away from it.
I understand the temptation of 'taking a gamble', but more often than not, I see accounts being devoured by greed and fear. Since everyone keeps asking, I will lay out the subtleties and pitfalls in plain language today. This is not to encourage you to enter the market, but to help you understand how to fasten your seatbelt if you must play.
1. Why do I always advise you to 'take a look first, don't act'?
Because leverage is not a benefit; it is a tool that amplifies human weaknesses. Using 5x or 10x 'crowbars' can yield greater returns, but one slip can hit yourself first. I have seen too many people who started cautiously and made a little profit, then became overly confident, fully leveraged, and ended up being 'taken away' by a market reversal. Remember, your primary goal is not to get rich overnight but to survive in this market first.
Two, several core concepts that will no longer leave you confused.
All-in and isolated positions are not a choice question; it’s a personality test.
Isolated positions, like independent pockets. If you invest 1000U in this currency, losing it means just that 1000U without touching your other money. Suitable for conservatives, or if you want to test a specific currency separately.
All-in, treating all the money in your account as a whole. If one position loses, it will deduct from the other funds to compensate. It sounds like it can 'withstand' longer? But the danger lies in the fact that it may cause you to lose all your assets with just one misjudgment. My advice is, unless you are very experienced, otherwise honestly use isolated positions.
Take-profit and stop-loss are your 'autopilot' and 'safety rope'.
Don’t always think about staring at the market, you will get tired, and your mindset will collapse. Always set a stop-loss when placing an order; this is a rule. When the price reaches your preset loss bottom line, the system will help you cut the position, acknowledge the loss, and exit to preserve the remaining capital. Take-profit helps you lock in profits; don’t always think about selling at the highest point.
As for 'marked price' and 'latest price', simply remember: using 'marked price' for stop-loss is more stable and less likely to be shaken out by the market's sudden 'false moves' (spikes); using 'latest price' for take-profit reacts faster.
Going long or short, think carefully about what you are really betting on.
Going long: you think it will rise, first buy in, and wait to sell when it rises. Buy low, sell high.
Going short: you think it will fall, first borrow the coin to sell, and wait to buy back after it has fallen. Sell high, buy low.
Sounds simple, but many people lose because they clearly see an upward trend yet go against the trend to 'guess the top' and short. The trend is your friend; don't always go against it.
Three, about 'rolling positions': myth or trap?
The original text describes rolling positions as a 'printing machine'. I honestly tell you, this is poison for 99% of retail investors, especially beginners, not a remedy.
Its essence is indeed to use profits to increase positions in a trend, pursuing compound interest. But this requires:
Judgment of major trends is extremely accurate (one mistake can ruin all previous efforts).
Iron discipline (when profits pull back, can you resist running away early?).
Strong mindset management (not being able to sleep when floating profits fluctuate significantly is common).
This is more like an extreme game of 'high skill and boldness'. For most people, I strongly advise: understanding is enough; don't easily imitate. If you can honestly handle a trend market once and catch a segment of the fish, you have already outperformed the vast majority.
Four, when a crisis comes: what should be in your 'first-aid kit'?
When the market changes suddenly, people can panic, and when panicked, they make foolish decisions. Remember these mindsets:
When encountering a 'spike' drop: don’t rush to add money!
Watch the trading volume closely. If the price drops without a significant increase in volume, it's mostly a 'false drop'; don't rush in to give away your head. Calculate how far your liquidation price is; if the cushion is thick enough, hold on. If it's already very dangerous, it's better to cut a portion first rather than fill in all your spare cash.
Received a warning for insufficient margin: cut through the chaos quickly!
Don't hesitate; prioritize closing the position with the largest loss and highest risk. This is not a heroic sacrifice; it’s about saving the queen by sacrificing pawns. The margin released can protect your other positions. Never do the reverse and close profitable positions; that would be cutting off your own escape route.
Play several currencies at the same time: keep them isolated!
Don't put all your eggs in one basket, and definitely don't tie all the baskets together with one rope! Make good use of the sub-account function of the platform to separate funds. This way, even if one currency goes wrong, it won't affect the others.
Five, my daily risk control habits (this is the life-saving charm).
Position calculator grows in your heart: I never open a single position exceeding 10% of total funds. Even if I think this opportunity is once in a lifetime. Remember, the market is not short of opportunities, it is short of capital.
Stop-loss is the first step to starting up: at the same time as placing an order, the stop-loss order must be set properly. I usually set it at a position where I can tolerate a 2%-3% loss of total funds.
If you are in profit, remember to 'move up the stop-loss': when the price rises, raise the stop-loss price above the opening price to ensure this trade at least doesn’t lose. Then adjust according to the situation and let the profits run.
Regularly 'harvest' and 'weed': when you make money, you should know to withdraw a portion, securing it. Check your positions weekly; decisively cut off those positions that have lost badly and show no hope; don’t fall in love with them.
Finally, a couple of sincere words.
The futures market is very stimulating, but it amplifies not only capital but also your humanity—greed, fear, and luck. Behind those seemingly 'multiple times in a year' stories are countless silent liquidated accounts.
The boundary of knowledge determines the boundary of wealth. Until you thoroughly understand the rules and risks, slow is fast. First, use small funds to feel the pulse of the market, hone your skills and mindset. In this market, surviving longer is a thousand times more important than making quick gains.
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