Futures Trading Pitfall Avoidance Guide: Practical Mindset from 50,000 to 300,000

When many people hear the term "Futures Trading", their first reaction is liquidation and gambling, but in my opinion, Futures Trading is a true profit-making tool. The key lies in whether one knows the correct way to play. Why do most people always chase after highs and sell at lows, standing guard at the peak? The core reason is simple: unregulated trading, relying solely on gut feelings for decision-making.

Here I share the iron rules of futures trading that I have summarized from real trading operations. Each rule is hard-earned experience, so remember these three life-saving principles:

1. Only trade mainstream cryptocurrencies: Focus on BTC and ETH, and firmly avoid altcoins. Sufficient liquidity is the foundation of trading safety, which can avoid the risk of being unable to close positions due to extreme market conditions.

2. Strictly set stop-loss: The loss for a single trade should never exceed 20% of the principal. If there are two consecutive losing trades, stop trading immediately to avoid greater losses due to emotional instability.

3. Stick to building positions in batches: Start with a small position to test the waters, and once the direction is confirmed and profits are generated, gradually increase the position size, always eliminate the gambler's mentality of "all-in".

In addition to defense, accurately capturing offensive signals is equally important:

• Short selling opportunity: When the MA60 moving average shows three instances of resistance on the 4-hour chart, the third instance is often a key reversal point for the market, resulting in a high probability of success for short selling.

• Long position opportunity: When the price reaches the previous daily level low and the RSI indicator enters the oversold zone, accompanied by a panic sell-off, it is often the best time to buy the dip.

• Mobile Take Profit Strategy: When profits exceed 50%, switch to 5-minute candlestick tracking to lock in profits dynamically and avoid roller coaster-style retracements.

The last point, and also the easiest to overlook, is key: you must withdraw your profits after making money. The market will not help you realize your dreams; it will only amplify your greed. Only by transferring profits to your bank card and securing them can you truly consider it a profit.

In recent days, I have relied on this method to accurately capture false breakout trends three times: directly shorting when the previous high lacks volume, and decisively going long when panic selling breaks through. There is no so-called "magical prediction", only strict adherence to the rules.

Futures Trading is not about courage, but about respect for the rules. Stick to the rules, and the market will be your "ATM"; break the rules, and the market will turn into a "meat grinder" that devours your capital.