Playing futures in the crypto world is not fundamentally a battle against candlestick charts, but a brutal war against human weaknesses. The design mechanisms of futures trading (high leverage, 24-hour trading, two-way position opening) perfectly amplify humans' most primal desires and fears.

Combining the current market environment and past blood-soaked lessons, I have summarized for you the most authentic reflection of human nature in futures trading and the red lines you must beware of.

💡 1. The True Reflection of “Human Nature” in Futures Trading

In the futures market, human nature often manifests as the following extreme and repetitive emotional cycles:

1. The Infinite Loop of Greed and Fear
* Greed (when winning): When you profit, human nature drives you to want more. You think “the trend isn’t over yet,” thus refusing to take profits or even adding leverage. The result is often “paper wealth” turning green instantly, or from profit to loss.
* Fear (when losing): When you are losing, fear prevents you from facing reality. Instead of cutting losses in time, you choose to “hold on,” fantasizing that the market will reverse, leading to bigger losses until liquidation.

2. Gambler’s Mentality (betting on luck rather than probability)
* Many treat futures as gambling, liking to “all-in” (All-in) or open 100x leverage.
* The psychological mindset is: “I will definitely win this round,” “I want to turn 100 bucks into a house.” Under this mentality, you’re not trading but giving the exchange “fees and liquidation costs.”

3. FOMO (Fear of Missing Out) (FOMO)
* Seeing the market surge, you chase high in a hurry; seeing others share profits, you think if you’re slow, you’ll be poor forever.
* The result is often “buy high and sell low,” buying at the top and then being deeply trapped.

4. Luck-Driven Psychology (ignoring rules)
* “This time is different, I feel it will go up.”
* “Just this once no stop-loss, next time I will set it.”
* The fact is, as long as you stay in the market long enough, “Murphy’s Law” will take effect. The one time you don’t set a stop-loss is often the time you get liquidated.

⚠️ 2. What Must You Pay Attention to in Crypto Futures?

To survive in the futures market, you must operate against human nature. Here are survival rules summarized from countless “liquidation” experiences:

📉 1. Risk Control Is the First Lifeline
The primary goal of futures trading is not “how much to make,” but “how to stay alive.”
Focus Wrong Approach (Human Nature) Correct Approach (Survival Rules)
Leverage The higher, the better, for excitement Beginners: 5-10x leverage; veterans also need caution. Leverage is a double-edged sword; lower leverage allows you to survive longer.
Single Position Size Going all-in on one trade Keep single position size within 10%-20% of total funds. Don’t put all your eggs in one basket.
Stop-Loss Setting No stop-loss, hold to the end Always set a stop-loss when opening a position. For example, set a hard stop at 3%-5%. Exit immediately when triggered—saving your life is the priority.
Capital Management Reinvest all profits, borrow to recover losses Take profits appropriately; don’t rush to recover losses. Keep at least 30% of reserve funds.

🧠 2. Build an “Anti-Human” Trading System
* Make a plan; no plan, no trading: Before opening a position, determine entry point, stop-loss, and take-profit levels. Don’t trade based on feelings while watching the charts.
* Partial take-profit (inverted pyramid): Don’t expect to sell at the highest point. When profits reach a certain margin, sell part to lock in gains, leaving the rest to aim for higher returns.
* Accept losses: Losses are part of trading. Even top traders have a win rate below 60%. Accept small losses to achieve big gains.

🧘 3. Self-Awareness of Body and Mind
When you notice the following signals, stop trading immediately and take a break:
* Physiological signals: Rapid heartbeat, sweating palms, tense shoulders while staring at the screen. This indicates extreme anxiety, and judgment is zero.
* Behavioral signals: Refreshing the app repeatedly, continuing to open trades after consecutive losses (trying to recover).
* Coping strategies: Use the “5-4-3-2-1” grounding technique to calm down, or go exercise or sleep. After two consecutive losses, it’s recommended to take a forced break of over an hour.

📌 Summary

Crypto futures are a mirror that reveals not your investment skills, but your control over desires. Those who can survive long-term in this market are not the “great gods” with the best technical analysis, but disciplined, respectful, risk-aware rational traders who embed risk control into their bones.

My advice is: if you cannot control the impulse to “gamble,” the best strategy is to stay away from futures, only hold spot, or simply not play at all. After all, preserving your principal is the greatest wisdom.