They say contracts are hard to understand; actually, if you break them down, it’s an obvious double-edged sword—while it cuts into your profits, the other edge is also aimed at your principal. Gains can come fast, but a drop can be even faster. I only understood after I suffered losses: before entering, chewing up and swallowing the rules matters more than any technical skill.

I’ve summarized a few iron laws of my own—sharing them with you:

First, check the funding rate whenever you can.
If it spikes, it means longs are effectively “paying wages” to shorts; the market is too hot. Following the crowd to chase pumps will likely get you burned as fuel. If it turns negative, shorts are subsidizing longs; sentiment cools to freezing point. In that moment, you definitely can’t impulsively try to bottom-fish—there’s often another “bottom” below.

Second, leverage isn’t the bigger the better.
It’s just a multiplier magnifying glass, not something that lets you go all-in. During my beginner period, I got burned by 100x leverage. Looking back now, for most people, 3x to 5x is already the ceiling. Don’t believe those stories about “making it all the way up in one move”—the market loves to educate the unwilling.

Now let me talk about my current trading process, simplified into four steps. Only after each one is nailed down do I act:

First, look at direction.
Check the daily chart first, then switch to 4-hour. Use moving averages together with MACD to map out the bigger trend. Ride the wave—never wrestle with the overall direction.

Second, wait for the timing.
When price returns to key support, or when the middle band of the Bollinger Bands holds steady without breaking, or when it breaks above an important resistance line with strong volume—these three signals: I only consider placing a trade if at least one is present. I never open positions recklessly.

Third, set a stop-loss.
Before opening a trade, you must ask yourself: if this trade is wrong, how much can I withstand at most? Once the number is set, it’s locked in. If the direction goes against you, cut decisively. A small loss is tuition; a liquidation is expulsion.

Fourth, take profit and exit properly.
When you’re in floating profit, don’t get greedy—take it in batches. Once you’ve earned the part you can clearly understand, that’s enough. The rest is for other people to fight over.

Finally, I drew a red line for myself: my single-position size will never exceed 30% of total capital.
This is a long race of trading. It’s not about who can explode the hardest, but who can stay seated at the table the longest. There are opportunities every day—this principal is the only one you have. Don’t always dream about getting rich overnight. Think about how to make it through tonight—more practical than anything else. #Bitcoin
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