Crypto contract trading is a psychological game; technical analysis accounts for only 30%, while the remaining 70% is a battle of mindset. Most liquidations are not due to lack of technical skill but result from irrational actions caused by emotional outbursts. Today, let's discuss common psychological traps in contract trading and strategies to deal with them.

Greed is the first enemy. When in profit, there's always a desire to earn more, constantly raising the take-profit point, only for the market to reverse and wipe out gains. Learning to take profits when the time is right and setting clear stop-loss and take-profit levels is key.
Fear makes people hesitant. After a loss, they dare not open new positions, missing opportunities; or they close positions quickly at slight profits, missing big market moves. Building a trading system and strictly following it can effectively reduce the impact of fear.
FOMO (Fear of Missing Out) is the most deadly. Seeing sharp rises and falls, traders can't help but chase orders, ending up buying at the highest point and selling at the lowest. There are always opportunities in the market; missing out is better than making mistakes.
Overconfidence is a state that often occurs after profits. After several successful trades, traders feel invincible, start risking large positions, and eventually lose everything in one go. Maintaining humility, as the market always teaches us lessons.
How to cultivate a good trading mindset? First, operate with small positions; position size determines mindset. Second, keep a trading journal to record the psychological state of each trade. Lastly, take regular breaks to avoid fatigue trading.
Remember: the key to consistent profits is not to catch every opportunity but to only trade what you understand. The market is always there; preserving capital is the future.