When it comes to trading contracts, my experience has gone from insomnia in the middle of the night to now being able to earn a stable monthly income of millions—honestly, this isn’t about talent or luck, but a very simple yet often overlooked methodology.

**Level One: Staying Alive Is More Important Than Making Money**

No matter how perfect the strategy is, one liquidation can wipe everything out. So, capital safety is the first line of defense.

Position sizing must be taken seriously: with a 100,000 yuan capital, try opening each position with 10,000 yuan, and ensure total exposure never exceeds 20%. Set a stop-loss at 2% per trade—no mercy, no self-deception, no holding through losses. As for leverage? Beginners should avoid it altogether, and experienced traders should keep their positions within 10%. This single rule can help you avoid 90% of liquidation traps in the market.

**Level Two: The Trading Philosophy of Less Is More**

Market movements are never about frequent trading to make money, but about the precision of your operations.

Focus on one direction—either long or short—and avoid switching between bullish and bearish positions frequently—this can significantly improve your success rate. Use mechanical methods to set stop-loss (3%) and take-profit (5%) points; this is a hundred times more reliable than on-the-spot judgment. As for trading frequency, the first 1-2 trades are the highest quality, and beyond three trades, you’re mostly just paying fees.

**Level Three: Avoid Common Pitfalls**

This is the dead end for 90% of beginners:

Adding to a losing position against the trend gets you closer to liquidation. Meaningless high-frequency operations can eat up most of your profits in fees. And the most painful part—taking profits but not cashing out, always thinking of one more shot, which often leads to liquidation with the thought "it should still go up."

**Case Study: Same 100,000 yuan, Two Completely Different Outcomes**

Failure scenario: full position + high leverage → market pulls back, add to position → finally get liquidated.

Correct scenario: only use 20,000 yuan as the base position → set 3% stop-loss and 5% take-profit → make two high-quality trades per week.

How big is the difference? The latter can achieve a stable 8% monthly return, and with compound interest, the annualized return can easily exceed 150%.

**Six-Word Summary from Experts**

What to do: use spare money, stay disciplined, trade unilaterally.

What to avoid: go all-in, hold through losses, block both sides simultaneously.

Final old saying: Contract trading is ultimately not gambling. Those who bet with living expenses on tomorrow’s market will end up falling along the way. Only by surviving long enough and protecting your principal do you deserve to talk about "big money" in the crypto world.