A friend recently came to consult me, and he started with: "I’m trading contracts in the crypto space, and I lost 4000 USDT directly. Is there still a chance to turn it around?"

I looked at his trading records, and it was obvious—he was all-in on single bets, chasing after rising prices, and bottom-fishing during dips. He’s been through all these pitfalls. Instead of continuing to complain, it’s better to learn lessons from the losses.

Later, I shared my commonly used contract opening strategy with him. The core logic is one word: stability. This framework is inspired by legendary trader Livermore’s trading philosophy:

**Step 1: Test the waters to enter**
Start with only 20% of your position. Many people go all-in right away, which is the biggest mistake. Leave enough room for trial and error, and your mindset will be much more relaxed.

**Step 2: Strict stop-loss**
Once you lose 10%, close the position immediately. This way, the actual loss is only 2% of the total position, which won’t damage your foundation. Many people stubbornly hold on, and only end up wiping out their account.

**Step 3: Add on profits**
When you gain 10%, increase your position by 20%. If it rises another 10%, add another 20%. By the third increase, add up to 40%, amplifying your profits. After that, as long as you’re still making money, hold on. But if there’s a 10% pullback, close everything to lock in profits.

It sounds simple, but in practice, it definitely requires discipline. The market changes every day, and it’s impossible to guarantee 100% profit, but this logic can tilt the odds in your favor. That’s how I open my own trades, and the results are pretty good.

Ultimately, the three words that scare contract trading are: chaos, greed, and fear. Getting the rhythm right and controlling each trade’s risk exposure is the key to transforming from a rookie to a pro.