Looking at the stories of funds doubling in the market, nine out of ten are just hype. I know a fan who entered with 2000U and held on for three months until it reached 62,000U. You ask me if this is a legend? Honestly—I say it’s not surprising at all, it’s just executing a fundamental rule to the extreme.

What is that rule? Many people will find it boring: before placing an order, think through the worst-case scenario. How much could you lose, where must you set your stop-loss, how to ensure you can walk away intact. Only after clarifying these points do you deserve to consider how much profit this trade can make.

Why do retail investors lose money on a large scale? Because they never think about “how to die.” Following the trend into the market, panicking at fluctuations, unwilling to cut losses when it’s time—that’s the real cause of death. Stop-loss and take-profit, just four words, but these are like a watershed, dividing the path between doubling your funds and wiping them out.

**How to Play Short-term Contract Trading**

Using 5x leverage for short-term trades, my goal is to make 6 to 8 points per trade. What about stop-loss? Absolutely no more than 3%. With small capital and high leverage, just one wrong move can trigger liquidation—there’s no way out.

For example, I use 10,000U to do a short-term ETH contract. If the account drops 3%, I close the position immediately. If I make 6% or 8%, I walk away. This may seem like small profit per trade, but sticking to it for two weeks can increase the account by 5,000U. The secret to tight stop-losses is two words: discipline. As long as the win rate stays above 50%, over time, the net value curve will inevitably trend upward.

There’s also a strict rule in short-term trading: only focus on coins with explosive trading volume and good liquidity. I never touch coins with light trading and dull volatility. I mainly watch the 15-minute K-line chart, using the KDJ indicator to buy at oversold and sell at overbought zones—simple method, highly effective.

**Mid-term Spot Trading Strategy**

The logic for mid-term spot trading is different. The goal is to capture about 40% of large swings, so you need patience and cannot be scared by 5% or 10% corrections in the middle. The key is to find the right stop-loss position—such as previous support lows or the 60-day moving average on the 4-hour chart.

In the long run, setting stop-loss and take-profit is essentially defining the risk-reward ratio. If done well, time will prove everything.