I admit that during that time I lived like a mad dog—full position betting, all in with high leverage, increasing the position against the trend, and finally watching my account plummet overnight without sleep. The taste of getting liquidated is worse than death, but it was precisely because of this fall that I summarized a "foolproof method," and instead, I have been steadily profiting from it until now. To put it simply, there's no myth of talent; it's just an ordinary person's process of quitting greed and fear.
**Preserving the principal is the top skill**
I have seen too many people, holding the best strategies and the most accurate judgments, yet losing everything in front of a single Get Liquidated. Why? Because they haven't understood one thing: the primary goal of trading is not to make a lot of money, but to survive long enough.
The first iron rule is to split positions. With a principal of 100,000, I only use 10,000 for each trial order, keeping the total position firmly below 20%. Sounds conservative? That's right, it's that conservative. The benefit of this approach is that even if I make a mistake once or twice, the account can still breathe.
Stop loss is something that many people say they will execute, but when it comes to critical moments, they start to "hold the position", "go all in", and "averaging down". My method is very ruthless: once a single loss reaches 2%, exit immediately, without hesitation, without luck, and without review. The execution power is reflected in the decisiveness of this moment.
There is also leverage, a double-edged sword. Newcomers? Disable it completely, don't touch it at all. Even experienced traders should be cautious, keeping the position ratio within 10%. Just this one rule can help you avoid 95% of the liquidation cases you've seen.
**Making money relies on doing the right thing, not doing more.**
The market is an anti-human place. The more restless a person is, the faster they tend to lose money. The idea of "the more you do, the more you earn" is actually the enemy of trading.
My current approach is to operate unidirectionally - either only going long or only going short, firmly avoiding back-and-forth trading. The benefit of this is that my mindset is stable, my thinking is clear, and the success rate is obviously increasing. If you insist on betting on both sides, it will just lead to self-consumption.
Mechanical discipline is the biggest habit I developed later on. Set a stop loss of 3% and a take profit of 5% in advance, and then do not change your mind on the spot. Many times, the moment you think "it should still go up" is the moment your account starts having problems. Don't let intuition control you; let the rules control you.
There is also the issue of trading frequency. My experience is that the best quality trades occur 1 to 2 times a day; once it exceeds 3 times, you are basically just giving money to the exchange in transaction fees. The fees may not seem like much, but over the long term, they can eat away at a significant portion of your profits.
**90% of beginners die in these few pitfalls**
Increasing the position against the trend is just a big trap. Every time you add to your position, you get one step closer to getting liquidated. It's like what a card player says "chasing the bet"; essentially, it's gambling rather than trading.
Meaningless trades can be fatal. You might open a position casually one afternoon when you're bored, and end up paying a lot in fees without making any profit.
The deadliest phrase is "It should still rise." Most liquidations stem from this thought. You should have exited with a profit when it reached 5%, but greed made you want to earn more, resulting in a plummet that led to liquidation. I've seen too many cases like this.
**Speak with numbers**
With the same principal of 100,000, the outcomes of the two strategies can be vastly different.
Wrong gameplay: Full Position operations, increasing leverage, adding positions after a decline, and holding onto positions until getting liquidated. This path is essentially a gambling accident.
Correct strategy: Use only 20,000 as the base position, set a 3% stop loss and a 5% take profit, and only select 2 high-quality trades each week. What are the results? Monthly returns can stabilize at 8%, and compounded over a year can reach over 150%. This is not a fantasy, it's the real effect of compound interest.
**Remember these six mantras**
To achieve: trade with spare money, strictly adhere to discipline, and follow a one-way trend.
Never do: All in with full position, holding orders without stop, blocking both ends at the same time.
The contract market has never been a casino. Those who come in with living expenses or borrowed money ultimately end up failing. Only by protecting your principal and surviving long enough do you truly qualify to talk about "making big money" in this market.
If you are still exploring, it is better to stop and try this method - find your own most stable rhythm, take fewer detours, and ultimately achieve stable profits. This is true skill.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
15 Likes
Reward
15
5
Repost
Share
Comment
0/400
RatioHunter
· 10h ago
This is what I've been emphasizing all along: the execution of stop loss is more important than anything else. Many people end up failing because of the two words "just wait a bit more."
---
To be honest, I have used the logic of splitting positions before, but I just can't stick to it; I still end up going all in. This time I really need to change.
---
The most painful thing is that phrase "it should still rise." I had my account blown up once and have never forgotten that lesson since.
---
Trading frequently without thinking is truly the most invisible way to be played for suckers; I've gradually become aware of the fees involved.
---
I'm also trying unilateral operations; it's definitely clearer than being blocked on both ends, and my mindset has indeed stabilized a lot.
---
You have to live long enough to have the right to talk about making money. This sentence strikes a nerve with too many people.
---
A monthly 8% sounds conservative, but compounded, it’s outrageous. However, most people can't wait for it.
---
The problem is that knowing what to do and actually executing it is like a distance of ten thousand miles. I keep falling into this pit again and again.
---
Leverage is really fierce; I particularly agree that newbies should avoid this—it’s a deep pit.
---
Increasing positions against the trend really feels like a gambler's mentality. If you're going to lose, lose quickly, and don’t drag down the principal.
View OriginalReply0
BlockchainArchaeologist
· 12-23 12:57
Really, I still can't manage that 2% stop loss now, every time I think "just wait a bit longer" and it ends up being over.
View OriginalReply0
MoonMathMagic
· 12-22 16:03
Getting liquidated once makes you honest, that's the best tuition.
---
Really, I also went through that phase of going all in with a full position, looking back at those days feels like gambling.
---
I agree with the point about keeping the position below 20%, but holding on is really hard.
---
The phrase "it should still rise" has cost many people's wallets...
---
A stop loss of 2% to exit? It sounds ruthless, but it indeed helps you survive longer.
---
150% compound interest in a year sounds great, but being able to hold out for the first three months without getting anxious is the real test.
---
The fees eating up half of the profits hit hard; I feel like I'm just giving money to the exchange every day.
---
Leverage is indeed poison; once you've touched it, you never want to touch it again.
---
Mechanical discipline is right, but human nature is all about challenging the rules.
---
The part about increasing the position against the trend is too real; I've seen people get margin replenishment to the point of losing everything.
View OriginalReply0
CrashHotline
· 12-22 15:48
Indeed, the moment of stop loss tests human nature the most. I have also experienced holding a losing position until I was on the verge of collapse.
"It should still rise" is a phrase I've heard too many times, and each time it marks the beginning of my account's shrinkage.
Diversifying positions is indeed tedious, but being alive is much more important than making big money.
I once went all in twice, and now looking at my account gives me PTSD.
The pleasure of a full position can't last three days, but regret can torment for three years.
The execution power of stop loss is truly a watershed; there's no such thing as luck.
Let's put aside whether I believe those who claim to earn 150% a month, but making money while staying alive is definitely better than getting liquidated.
Frequent trading is just giving the exchange transaction fees for free; I only make two moves a week now.
It feels like this method goes against human nature completely, yet it happens to be effective.
If I hadn't been liquidated once, I would never have understood this principle.
View OriginalReply0
TommyTeacher1
· 12-22 15:47
To be honest, this method is just the process of cutting off greed.
I've also gone all in with a full position before, and looking back now I still feel scared...
A 2% stop loss is really harsh, but indeed, you can only make money if you survive longer.
90% of people die on the phrase "it should still rise," and I am one of them.
This is no secret; it's just a battle between discipline and human nature.
Strictly execute the stop loss, don't think about a comeback, and you can really walk out alive.
The most profitable people in the market are not those who trade frequently, but those who are too lazy to move.
Leverage is like a drug; once you touch it, you want to go for a second hit.
I used to think that doing more means earning more, but the fees eat up profits quickly.
Just 2 high-quality trades a week sounds conservative, but compounding at 8% a month is really terrifying.
The essence of making money is to stay alive; don't die on the way.
I admit that during that time I lived like a mad dog—full position betting, all in with high leverage, increasing the position against the trend, and finally watching my account plummet overnight without sleep. The taste of getting liquidated is worse than death, but it was precisely because of this fall that I summarized a "foolproof method," and instead, I have been steadily profiting from it until now. To put it simply, there's no myth of talent; it's just an ordinary person's process of quitting greed and fear.
**Preserving the principal is the top skill**
I have seen too many people, holding the best strategies and the most accurate judgments, yet losing everything in front of a single Get Liquidated. Why? Because they haven't understood one thing: the primary goal of trading is not to make a lot of money, but to survive long enough.
The first iron rule is to split positions. With a principal of 100,000, I only use 10,000 for each trial order, keeping the total position firmly below 20%. Sounds conservative? That's right, it's that conservative. The benefit of this approach is that even if I make a mistake once or twice, the account can still breathe.
Stop loss is something that many people say they will execute, but when it comes to critical moments, they start to "hold the position", "go all in", and "averaging down". My method is very ruthless: once a single loss reaches 2%, exit immediately, without hesitation, without luck, and without review. The execution power is reflected in the decisiveness of this moment.
There is also leverage, a double-edged sword. Newcomers? Disable it completely, don't touch it at all. Even experienced traders should be cautious, keeping the position ratio within 10%. Just this one rule can help you avoid 95% of the liquidation cases you've seen.
**Making money relies on doing the right thing, not doing more.**
The market is an anti-human place. The more restless a person is, the faster they tend to lose money. The idea of "the more you do, the more you earn" is actually the enemy of trading.
My current approach is to operate unidirectionally - either only going long or only going short, firmly avoiding back-and-forth trading. The benefit of this is that my mindset is stable, my thinking is clear, and the success rate is obviously increasing. If you insist on betting on both sides, it will just lead to self-consumption.
Mechanical discipline is the biggest habit I developed later on. Set a stop loss of 3% and a take profit of 5% in advance, and then do not change your mind on the spot. Many times, the moment you think "it should still go up" is the moment your account starts having problems. Don't let intuition control you; let the rules control you.
There is also the issue of trading frequency. My experience is that the best quality trades occur 1 to 2 times a day; once it exceeds 3 times, you are basically just giving money to the exchange in transaction fees. The fees may not seem like much, but over the long term, they can eat away at a significant portion of your profits.
**90% of beginners die in these few pitfalls**
Increasing the position against the trend is just a big trap. Every time you add to your position, you get one step closer to getting liquidated. It's like what a card player says "chasing the bet"; essentially, it's gambling rather than trading.
Meaningless trades can be fatal. You might open a position casually one afternoon when you're bored, and end up paying a lot in fees without making any profit.
The deadliest phrase is "It should still rise." Most liquidations stem from this thought. You should have exited with a profit when it reached 5%, but greed made you want to earn more, resulting in a plummet that led to liquidation. I've seen too many cases like this.
**Speak with numbers**
With the same principal of 100,000, the outcomes of the two strategies can be vastly different.
Wrong gameplay: Full Position operations, increasing leverage, adding positions after a decline, and holding onto positions until getting liquidated. This path is essentially a gambling accident.
Correct strategy: Use only 20,000 as the base position, set a 3% stop loss and a 5% take profit, and only select 2 high-quality trades each week. What are the results? Monthly returns can stabilize at 8%, and compounded over a year can reach over 150%. This is not a fantasy, it's the real effect of compound interest.
**Remember these six mantras**
To achieve: trade with spare money, strictly adhere to discipline, and follow a one-way trend.
Never do: All in with full position, holding orders without stop, blocking both ends at the same time.
The contract market has never been a casino. Those who come in with living expenses or borrowed money ultimately end up failing. Only by protecting your principal and surviving long enough do you truly qualify to talk about "making big money" in this market.
If you are still exploring, it is better to stop and try this method - find your own most stable rhythm, take fewer detours, and ultimately achieve stable profits. This is true skill.