The stories in the crypto world are always the same—someone gets wiped out in a liquidation, falling from heaven to hell. The account balance plunges, and the mental defenses collapse along with it. But I’ve seen many people go from green to black, then back to red; the key lies in whether they’ve established real trading discipline.

Many beginners are asking the same question: Why do I always lose? It’s not bad luck; it’s that the method is wrong. I’ve summarized the most common pitfalls in contract trading into six iron rules. As long as you can execute them properly, your chances of turning things around will greatly increase.

**Rule 1: Strictly Follow Take Profit and Stop Loss**

Your principal must stay alive to have a chance to continue. Many can’t withstand a single correction, and their accounts are wiped out completely. Taking profits and cutting losses is not greed; it’s rational. When you see a wrong order, close it immediately—don’t expect a rebound.

**Rule 2: Frequent Trading Is the Fastest Way to Lose Money**

The transaction fees and slippage on a single trade can eat up 1-2 points of your profit. High-frequency trading looks active, but in reality, you’re just working for the exchange. Better to be steady, precise, and decisive—only a few accurate trades per month.

**Rule 3: Holding Cash and Watching Is Not Escaping**

Not acting when you can’t see the market clearly is much better than reckless moves. Missing a trade feels uncomfortable, but it won’t cause a liquidation. Stay in cash and wait for signals to become truly clear before entering.

**Rule 4: Small, Frequent Gains Will Never Be Outperformed by Steady Growth**

Your goal shouldn’t be to turn a hundred dollars into ten times that— that’s gambling mentality. A 1% return, compounded monthly, is not low. Treat contracts as tools, not lottery machines; long-term profits will surprise you.

**Rule 5: Going All-In Is a Death Trap**

Black swan events happen frequently in the crypto world. One compliance risk or a single piece of news can wipe out a full account instantly. Keep a light position to leave room for buffers. Opportunities in crypto are always there, but your capital is only one.

**Rule 6: Follow Your Plan and Stick to It**

The hardest part isn’t making the plan; it’s sticking to stop-losses during a decline. Overcoming greed and fear in human nature is how you surpass most retail traders. Candlestick charts will test your resolve, but discipline will save your account.

These six rules are not just theories—they are distilled from countless real trades. You’ll find that successful traders who consistently profit all operate under the same principle—manage risk first, then let profits run.