Doing contracts over these years, I have seen too many people get liquidated instantly in a market surge. A friend named Aya has a very representative experience—she once lost sleep over her losses, but now her stable monthly income can reach millions. She says she has no special talent, relying on a set of "most simple" methods: simple, executable, and truly effective.

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

This is the premise of everything. No matter how perfect the strategy is, it’s all blank paper in the face of a liquidation.

Position sizing cannot be vague. With a 100,000 capital, only use 10,000 per trade to test, with an overall position cap of 20%. The benefit of this approach is that even if one judgment is wrong, it won’t cause fundamental damage.

Stop-loss must be fixed. Exit when losing 2% on a single trade—no waiting, no gambling. Many failures happen here—thinking it can rebound, but ending up trapped deeper and deeper.

Leverage—advice for beginners is simple: don’t use it. When experienced, don’t exceed 10% of your position. Just this one rule can help you avoid most risks.

**Second Level: Do Less, Do Better, Don’t Be Greedy**

Making money is never about increasing the number of trades.

Stick to one direction—either only go long or only go short. People who flip back and forth have much lower success rates, and they pay unnecessary fees.

After setting stop-loss and take-profit, don’t change your mind on the spot. For example, 3% stop-loss, 5% take-profit—write it into your rules and follow them. Mechanical execution may seem boring, but it’s far more stable than impulsive decisions.

Trading frequency has an invisible upper limit. The first 1-2 trades each day are the best quality; exceeding 3 trades is basically doing ineffective work. The fees eaten up by commissions can eat into more profit than you imagine.

**Third Level: Pitfall Guide**

Never try to add positions against the trend. Each time you add, you get closer to liquidation. No one can predict the market precisely, but the red line of stop-loss must be strictly guarded.

Avoid meaningless trades. A 5-dollar fee per trade may seem insignificant, but accumulated, it can eat up half a year’s profit.

And the most deadly trap: profits are not truly realized. Many liquidation stories start like this—"It should still go up," but then the market reverses, and all previous profits are wiped out.

**Compare and See the Effect**

With the same 100,000 capital, how big can the difference be between two approaches?

Wrong way: full leverage on full position → market drops, repeatedly add to position → last wave hold-out → liquidation.

Right way: allocate 20,000 as a base position → strictly follow 3% stop-loss and 5% take-profit → only two high-quality trades per week.

Numbers speak for themselves. The latter can maintain about 8% monthly profit steadily, and with compound interest, the annualized return can exceed 150%. The former might result in account zeroing out.

**Final Words**

This market is not a casino, even though it sometimes looks like one. People using living expenses to trade contracts will likely wake up at some point—but at a cost already paid.

The real logic of making money isn’t that complicated: protect your principal, survive long enough, and follow discipline. Only then will you have the qualification to talk about "big money" in the crypto market.