Perpetual contracts are indeed a fast track to doubling your investment, but they are also a hell that can wipe out your position quickly.

I have seen too many newcomers go all-in as soon as they enter the market, only to be liquidated by a small market adjustment. In the end, they not only lose their principal but also miss the chance to recover. Therefore, today I want to share some fundamental trading logic. I can't promise it will make you rich overnight, but at least it can help you avoid most rookie pitfalls. In the crypto world, simply surviving is already a victory.

**Tip 1: Position size is the baseline, not courage**

Going all-in is the most common mistake among beginners. They think that putting all their money into a trade shows bravery, but in reality, that’s gambling mentality. A slight correction can wipe you out, regardless of your market sense. My approach is to always leave room for trial and error. Losing once or twice is okay, but three consecutive losses mean your method has a problem.

The core of position management is: don’t let a single loss be fatal. This way, you stand a better chance of surviving in the market long enough.

**Tip 2: Follow the trend, don’t fight the market**

Human nature is inherently inclined to buy the dip and fear chasing the rally. But profitable traders never operate this way. They follow the trend. When an upward trend experiences a correction, that’s the market giving you chips. As long as the trend isn’t broken, hold on, don’t guess when it will reverse. The market has inertia, and the probability of trend continuation is always higher than reversal.

Many losing trades stem from the thought: “This level should rebound.” But the market often doesn’t follow your expectations. Instead of guessing, it’s better to go with the flow.

**Tip 3: Stop-loss and take-profit are your moat**

Making money isn’t hard; guarding it is. Without stop-loss and take-profit, even the best intuition is useless. I set three iron rules for myself:

1. Limit each loss to within 5% of total capital. In other words, even if you lose 10 trades in a row, you still have money to continue trading.
2. Aim for at least 5% profit per trade so that your risk-reward ratio supports your strategy.
3. Maintain a win rate above 50%. You don’t need to win every trade, but wins should be big enough to cover the losses.

By following these three points, your funds can grow steadily.

**Tip 4: Don’t move unnecessarily, learn to be idle**

Another mistake rookies make is being overly active. Doing five or six trades a day, or dozens or hundreds a month, often results in more losses. Trading isn’t physical labor; it’s an art of waiting.

My current habit is to limit myself to 2-3 well-planned trades per day. It may seem few, but each trade is carefully considered. Compared to randomly clicking hundreds of times, this approach is far more efficient. The market is always there; you don’t need to enter every minute.

**In summary: don’t go all-in, follow the trend, control risk, and trade less.**

Being able to stay calm, wait patiently, and survive long enough in the crypto world is more valuable than any get-rich-quick secret. Because in the end, those who survive are often not the smartest but the most rational.