My Contract Trading Experience: Know When to Take Profit, Know When to Cut Losses

Watching the candlesticks dance on the chart every minute, I am reminded of sleepless nights caused by account burns. There are times when a 10–15% drop in Bitcoin is enough to wipe out the entire capital of those using high leverage. This is the harsh reality of the futures market: fast, strong, and unforgiving. Amidst social media flooded with stories of “overnight wealth,” the sustainable winners quietly make money through discipline, risk management, and macro strategies. This article summarizes practical experiences to help you survive in the futures market – and only when you survive, do you have a chance to earn long-term profits. More Important Policies Than Technical Indicators Many people are immersed in RSI, MACD, Bollinger Bands… but forget that the biggest driver of the market is policies and capital flow. The Fed’s interest rate decisions often have a greater impact than any candlestick pattern. The US crypto ETF approval process can determine the medium-term trend. Before major economic data like Nonfarm, CPI, PCE… it’s best to reduce positions to avoid shock volatility. Core principle: If you don’t understand macro, don’t trade futures. Capital Management Is the Foundation of Survival The most common mistake among beginners is entering positions too large relative to their accounts. Total position size should not exceed 5% of capital for beginners. Experienced traders also should not exceed 20%. Don’t let the “dream of quick riches” cloud your discipline. Suggested allocation 3-3-3-1: 30% for BTC/ETH (moderate volatility).30% for Layer 2 ecosystem (set tight stop-loss).30% keep cash on hand for opportunities.10% for high-risk trades (each order ≤ 2% of total capital). Safe leverage: 3–5x. Avoid: 10x or more – the risk of account burn skyrockets. Profit-taking Art: Let Profits Run Without Losing Control Taking profits isn’t about selling everything at once. When profit reaches 15% → take 40% to lock in gains. When profit reaches 25% → ensure at least 10% of actual profit is retained. Apply trailing stop: price increases by 10% → move stop-loss up by 5%. Discipline Rules: Price breaks MA7 → reduce position by 50%.Don’t sell out of fear, don’t hold out of greed. Discipline in Stop-Loss: Less Loss, More Win Stop-loss is difficult because of the psychology of “waiting a bit more.” But the market doesn’t wait for you. A 15% loss is a cut, no hesitation. Place stop-loss below the support zone (long) or above the resistance zone (short).Don’t move stop-loss based on emotions. Remember: Capital preservation is more important than chasing profits. Trading Psychology Determines 50% of Results The biggest enemy of traders is… themselves. Strong rise → don’t FOMO, wait for a pullback then enter. Deep decline → don’t panic, take notes and learn from it. Cooling-off mechanisms: Losing 3 consecutive trades → rest for 24 hours.Profits in a day > 30% → stop trading. Discipline significantly reduces the risk of “paying back the market.” Survive First, Make Money Later The crypto market is full of opportunities but also many traps. Most futures traders are eliminated within the first year due to lack of discipline and risk management. Long-term survivors share these traits: Respect the marketFollow disciplineConstantly learn and improve strategies High leverage does not mean high profits. Only good risk management can help you go the distance. Conclusion Futures trading is like walking on a tightrope. Every step requires alertness and discipline. If you can control risks, maintain psychological stability, and stick to your strategy, the market can become a tool to improve your life – not a machine that devours your capital. Learn before trading, survive before dreaming of wealth. That is the sustainable path in crypto.