If you want to play well with contracts, these five rules must be remembered! Especially newbies should read carefully to avoid taking detours.

1. Core Mindset: Make "Survival" the Primary Goal
1. Respect the market, abandon the fantasy of getting rich quickly.
The essence of the contract market is a zero-sum game. You may profit in the short term due to luck, but to survive in the long term, you must rely on rationality. Never think of yourself as the "chosen one"; the market is always more complex than your understanding. The mentality of getting rich quickly can lead people to heavily invest and trade frequently, ultimately being devoured by volatility.

2. Accepting losses is an inevitable cost
Losses are a part of trading; no one can achieve a 100% win rate. The key is to control losses within an acceptable range through stop-loss rules, avoiding a single mistake leading to a devastating blow. Treat losses as tuition fees, not as a disgrace.
2. Emotion Management: Combatting Human Weaknesses
1. The balance of fear and greed
Fear: not daring to enter the market when it drops, afraid of missing out (FOMO) when it rebounds, easily chasing highs and selling lows.
Greed: unwilling to take profits when in the black, always wanting to "eat the whole fish", ultimately turning a profit into a loss.
Countermeasure: Replace emotions with rules, develop a trading plan in advance (when to enter, stop loss, take profit), and execute it cold-bloodedly like a machine.
2. Reject "retaliatory trading"
Rushing to recover losses is the trigger for most people to be liquidated. At this time, it is necessary to forcibly pause trading, review mistakes, rather than "bet back" with a larger position.
3. Avoid overconfidence
Continuous profits can easily lead people to overestimate their abilities and overlook risks. Remember: the market can reverse at any time, and past victories do not guarantee future success.
3. Strategy Discipline: Use a system to counter uncertainty
1. Position management is above all else
The position of a single trade should not exceed 2%-5% of the principal (adjust according to risk tolerance).
Never add to a "dead hold position"; decisively cut losses when floating losses exceed the plan.
Leverage is a double-edged sword; newbies are advised to start with low leverage (such as 3-5 times).
2. Only trade what you understand.
Market opportunities are limitless, but the possibilities that belong to you may only be 1-2 types of patterns (such as trend breakout, pullback reversal). Focus on the patterns you are good at and abandon the "noise" in complex fluctuations.
3. Recording and Reviewing
- Daily trading log: Analyze opening and closing logic, emotional fluctuations, execution deviations.
- Regularly analyze win rates and profit-loss ratios to optimize strategy flaws.
4. Cognitive Enhancement: Continuously Evolving Traders
1. Understand the essence of the market

2. Stay open and humble
The market is always changing, and past strategies may not work. Continue to learn new tools (such as options hedging) and new logic (such as the impact of the macroeconomy on assets) to avoid resting on your laurels.
3. Distinguish between "luck" and "skill"
A single success may be luck, but long-term stable profits are实力. Be wary of survivor bias, and do not blindly imitate others' "myths."

5. Ultimate Insight: Trading is a process of cultivating the mind.
Contracts are not gambling, but a probability game: capture high probability opportunities with rules, accept small losses, and embrace big gains.
The biggest enemy is oneself: 90% of failures are due to a collapse of mindset, not a lack of skill

The cryptocurrency market is filled with uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the associated risks when participating in cryptocurrency investments, remain calm and rational, and adopt a prudent strategy to cope with market changes!