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Trading contracts, the biggest risk is often not misjudging the market but failing to manage your mindset. Today, let's talk about how to avoid common pitfalls.
**Stop profit and stop loss must be executed**
Crypto market fluctuations are rapid, and a delay in decision-making can lead to losses. Set reasonable take-profit levels, and when you see profits, lock them in decisively. This is not regret but self-protection. Similarly, clear stop-loss levels help you avoid deepening losses. Greed is the biggest enemy in this market.
**Account funds are limited**
Opportunities in the crypto space are plentiful, but your capital is fixed. Every trade should leave room for error; don’t let a single misjudgment cause serious damage. This is the prerequisite for long-term survival.
**Frequent trading eats into profits**
Many people open dozens of trades a day, but the accumulated transaction fees become the biggest expense. Especially with high leverage, the cost of a single position can take up 1-2 points, making profitability much harder. Instead of shooting blindly, aim for precise entries.
**Holding a position is also a form of trading**
When the market is chaotic and signals are unclear, the smartest move is to wait. There are always opportunities, and patiently waiting for high-confidence signals can significantly improve your win rate. This is not cowardice but experience.
**Leverage is a double-edged sword**
Trading contracts without leverage is boring, but high leverage is truly dangerous. If your market direction judgment is wrong, it could mean total loss. Rationally control your position size to preserve your capital and have a chance to turn things around.
**Mindset and discipline are the greatest tests**
Even the most perfect strategy cannot be executed if your mindset is not disciplined. From novice to expert, it’s a constant struggle between discipline and desire. Persistence is difficult but essential.
The contract market offers both opportunities and risks. I hope these tips help you avoid detours and survive longer here steadily.