Behind the profit frenzy lies a bottomless pit of risk traps.
I have personally witnessed a friend turn $1000 into $50,000 in two months; that kind of madness felt like riding a rocket. However, the good times didn't last long; an impulsive full-position trade caused all profits along with the principal to evaporate in just one hour.
Such stories are constantly replayed in the cryptocurrency world; the seemingly simple tool of perpetual contracts has become a meat grinder for countless novice players.
Today, what I want to share is not some 'wealth secret,' but the four survival rules I have summarized from four years of crawling through the cryptocurrency space. These may not make you rich overnight, but they will definitely help you survive longer in this market.
Rule One: Position management is your moat, not a charge call.
Many beginners rush in with their entire position at the sight of an opportunity, only to be forced out by a small market fluctuation. The essence of position management is to control risks, not to amplify gains.
My approach is: for any single trade, the risk exposure must not exceed 2%-5% of the total capital. Don't underestimate this ratio; it allows you to keep your principal on the table even in the case of consecutive wrong judgments.
For example, if you have a capital of 100,000 USD, limit a single loss to 2,000 USD. If you set a 3% stop-loss margin, then the position size can be calculated using a formula; this way, even if a stop-loss occurs, it will not harm the foundation of the principal.
Rule Two: The trend is your friend; don't challenge the market.
We always think about buying at the lowest point and selling at the highest point, but this perfectionism often ends badly in reality. The real winners go with the trend, not trying to prove that they are smarter than the market.
My experience is: when the trend is upward, any violent pullback is an opportunity to go long; when the trend is downward, all rebounds are signals to exit. Judging the trend is actually not complicated; often, a golden cross on the weekly EMA followed by a pullback that does not break is a signal that the main force has finished washing the盘.
The biggest taboo is to operate against the trend. Statistics show that the winning rate for counter-trend trading is usually less than 20%, which means that over 80% of counter-trend operations will ultimately result in losses.
Rule Three: Lock in risks with rules and let profits run.
Before placing an order, two points must be made clear: the stop-loss point and the take-profit point. My bottom line is that any single loss must not exceed 2% of the total capital. Once there is a floating profit, immediately move the stop-loss to the cost price to ensure that this trade at least does not lose money.
Regarding profit handling, I have a 'profit withdrawal rule': withdraw 200,000 for every 1,000,000 earned, and convert it into fiat currency for fixed deposits. The numbers in the crypto world may look beautiful, but if they haven't turned into a balance in your bank card, they are just floating profits.
The fundamental reason for many people's losses is the lack of stop-loss awareness. When the price falls below the 20-day moving average, you must reduce your position; if it falls below the 60-day moving average, you should decisively clear the position. Remember, learning to cut losses is the beginning of maturity.
Rule Four: Most of the time, you should 'do nothing'.
Trading is the art of 'waiting', not a physical job. Frequent operations only amplify mistakes and deplete your mindset. I strictly limit my trading frequency each day; without high certainty opportunities, I patiently wait.
The market is never short of opportunities; what is lacking is the principal and a clear mind. There may only be 3-5 truly worthwhile trending opportunities in a year; the rest of the time is just fluctuations and garbage time.
Holding cash is also an important operational strategy; it's the best way to control drawdowns. When the market lacks a clear direction, the best practice is to watch quietly until the trend is clear.
Finally, a few words.
The perpetual contract itself is just a tool; it is neither a money printer nor a flood beast. The real risk comes from the person using it.
In this high-risk market, surviving is winning. The door of the crypto world is always open for those who understand discipline; the key is whether you can let go of lucky thinking and embrace the rules. Follow Bin Ge to learn more firsthand information and precise points in the crypto world, becoming your navigation in the crypto space; learning is your greatest wealth!#BTC走势分析 #AI专属社交网络Moltbook $ETH
