Live Longer in the Contract Market: Don't Gamble, Trade Instead

Every time I see newcomers entering the market and using high leverage to chase the peak, only to panic and cut losses, I feel compelled to say a few honest words. Contracts are not a “money printing machine.” Essentially, they are like a magnifying glass: they can amplify profits but can also burn through your account in just a few price swings. Today, I won’t talk about getting rich quickly; I will focus on a single goal: how to survive longer and achieve sustainable profits.

1. Understand the Rules Before Pressing the Button Many people enter trades without understanding what funding fees are, and they trade heavily. That’s not trading; that’s rolling dice. What is funding fee? It’s a unique mechanism of perpetual contracts, usually paid every 8 hours. Positive funding: long side pays the short side → the market is overly euphoric, and chasing can easily turn you into the “holder.”Negative funding: short side pays the long side → pessimism remains strong, and the downtrend may not be over. Don’t just look at the funding price; it’s also a thermometer measuring market sentiment. How to choose the right leverage? New traders often think 50x–100x is “deserved.” In reality, the higher the leverage, the thinner the margin of tolerance. A slight price fluctuation can wipe out your account. 👉 Tip for beginners: 3–5x is enough to learn the market rhythm. When you haven’t yet mastered emotional control, high leverage only makes you lose faster.
2. The 4-Step Process: Lock the Volatility in a Cage Step 1: Identify the Major Trend Don’t stare at the 1-minute chart; most of it is noise. Start from the daily chart, observe: MA20 and MA50 moving up or downMACD indicating an uptrend, downtrend, or sideways movement If the major trend is still weak, short-term rebounds are not worth betting big on. Following the trend is always the most advantageous strategy. Step 2: Choose a Reasonable Entry Point Once the direction is identified, the next question is: when to enter? I usually use the 4-hour chart combined with: Price returning to the middle of Bollinger BandsRSI exiting oversold territory and turning upVolume increasing compared to previous levels When these three factors align, the probability of winning is much higher. Step 3: Cut Losses as a Mandatory Rule Before entering a trade, know where to exit if wrong. For example: accept losing 5% of your capital per trade. Hitting that level means exit, no negotiation. The market is not obliged to turn in your favor. Most accounts blow up not because of poor analysis but because traders refuse to cut losses. Step 4: Take Partial Profits Don’t dream of catching the entire wave. When profits reach about 10%, close part of your position. For the rest, set a trailing stop (—for example, if it retraces 7%, then exit ). This method helps you: Lock in profitsRemain in the trade if the price continues to run strongly
3. Capital Management: The Safety Rope of Your Account No matter how good your strategy is, you will lose if you go “all-in.” My personal rule: No more than 30% of total capital per tradeWhen the market is unpredictable, reduce to 10–15%If you experience several consecutive losses, stop and observe Not trading is also a decision. As long as you have capital, there’s still a chance.
4. The New Mindset Is Your Ultimate Weapon The most dangerous phrase in the market is: “This time is different.” Avoid overtrading: small fees and mistakes will erode your profitsSay no to FOMO: when prices run strongly, ask yourself: is this aligned with my strategy? If not, skip itKeep a daily journal and review: you’ll realize most losses come from emotions, not system failures. Conclusion Contracts are not for impatient people. They reward those who are disciplined, patient, and know how to protect their capital. In this market, simply surviving is a form of victory. Learning, developing a process, controlling emotions—that’s your most valuable asset on the long trading journey.