The threshold for Futures Trading seems low, but in reality, it is a psychological battle. I grew 3000U to 130,000U, not by relying on luck, but by strictly adhering to five survival rules.
A tool like 100x leverage can help you accumulate quickly when the trend is favorable, but it can also wipe out your account instantly when the trend goes against you. So the issue isn't the size of the leverage, but whether you can control the risk.
**Article 1: Stop-loss is the bottom line** The market will test your psychology. If you can still hold on after a 10% drop, and are reluctant to sell after a 30% drop - this kind of thinking has led to many liquidation cases. Once you reach the stop-loss point, you must exit; accepting a loss is always better than liquidation.
**Article 2: Continuous losses must be paused** When the market is chaotic, technical analysis fails, and stubbornly clinging on is tantamount to seeking death. If you make five consecutive wrong trades, close the trading software and set a circuit breaker for yourself. Most of the time, after a day's pause, the market direction becomes clear.
**Article 3: Profits should be taken in a timely manner** The numbers in the account can be deceiving. If you earn 3000U, withdraw half immediately; this is not greed, but being responsible for yourself. Only profits that are withdrawn to a real account count.
**Article 4: Only trade in directional markets** In a one-sided trend, high leverage acts like a money printer. But in a volatile range, it instantly turns into a meat grinder. When the direction is unclear, it's better to wait than to force it.
**Article 5: A single position shall not exceed 10% of the principal** To win, you must first survive. A configuration of 300U per order may seem conservative, but it actually allows you to stay alive in the market longer. A light position means a stable mindset, which enables decisive actions.
Futures Trading, to put it simply, is a test of endurance. Behind those stories of overnight liquidations often lie the neglect of these fundamental rules. Engraving these in your mind will lead to a longer survival cycle in the crypto world.
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The threshold for Futures Trading seems low, but in reality, it is a psychological battle. I grew 3000U to 130,000U, not by relying on luck, but by strictly adhering to five survival rules.
A tool like 100x leverage can help you accumulate quickly when the trend is favorable, but it can also wipe out your account instantly when the trend goes against you. So the issue isn't the size of the leverage, but whether you can control the risk.
**Article 1: Stop-loss is the bottom line**
The market will test your psychology. If you can still hold on after a 10% drop, and are reluctant to sell after a 30% drop - this kind of thinking has led to many liquidation cases. Once you reach the stop-loss point, you must exit; accepting a loss is always better than liquidation.
**Article 2: Continuous losses must be paused**
When the market is chaotic, technical analysis fails, and stubbornly clinging on is tantamount to seeking death. If you make five consecutive wrong trades, close the trading software and set a circuit breaker for yourself. Most of the time, after a day's pause, the market direction becomes clear.
**Article 3: Profits should be taken in a timely manner**
The numbers in the account can be deceiving. If you earn 3000U, withdraw half immediately; this is not greed, but being responsible for yourself. Only profits that are withdrawn to a real account count.
**Article 4: Only trade in directional markets**
In a one-sided trend, high leverage acts like a money printer. But in a volatile range, it instantly turns into a meat grinder. When the direction is unclear, it's better to wait than to force it.
**Article 5: A single position shall not exceed 10% of the principal**
To win, you must first survive. A configuration of 300U per order may seem conservative, but it actually allows you to stay alive in the market longer. A light position means a stable mindset, which enables decisive actions.
Futures Trading, to put it simply, is a test of endurance. Behind those stories of overnight liquidations often lie the neglect of these fundamental rules. Engraving these in your mind will lead to a longer survival cycle in the crypto world.