I want to discuss a real-world topic with everyone—why so many people stumble in the derivatives market. At the same time, I’ll share my recent thoughts and experiences; maybe it will inspire you.

Many beginners, when they first enter the market, are attracted by the volatility of the crypto market (which is indeed outrageous compared to traditional finance), thinking that volatility equals opportunity. As long as they dare to open positions, they believe they can make quick money. The problem is, they don’t really consider the risks, let alone understand that risk and reward are two sides of the same coin. What’s especially painful is that once you taste the sweetness, your confidence rapidly inflates—you start to think analysis is unnecessary, and you open 100x leverage, feeling the adrenaline rush, dreaming of getting rich overnight. But what happens? You fall from heaven to hell in a second.

Honestly, to survive long in the contract market, you need two things: top-tier execution skills and an ironclad mindset. Both are indispensable. Otherwise, you become free labor for the exchange—without any reward. This reminds me of a phrase from the hot liquidity mining days: “If you don’t know who’s making money, then you are the one making money.” This applies to the contract market as well. Is it brutal? Yes. But that’s the reality—a war without gunfire but bloodshed everywhere.

So here’s the key question—how can you survive longer? I’ve summarized four core points, and today I’ll start with the first.

**Point 1: Choosing Entry Points**

This is the most important aspect, and no matter how much I emphasize it, it’s not enough.

Suppose your technical analysis is very accurate, your bullish logic is flawless, but you enter near the top. What will happen? Most likely (to put it bluntly, inevitably) you’ll face a deep correction, your account shows continuous floating losses, and your psychological pressure skyrockets. In the end, instead of receiving congratulatory emails from the exchange, you get that cold reminder: “Margin insufficient.”

Next, you either get liquidated or watch your funds shrink helplessly. If you can’t stand it anymore, you might cut losses and give up. Even more heartbreaking, some people try to short to recover losses, only for the market to rebound suddenly, and they get slapped from both sides.

See, 95% of these tragedies stem from the same problem: choosing terrible entry points.

Being able to accurately grasp the timing of entry essentially tests your understanding of market cycles, your sensitivity to technical patterns, and your risk assessment skills. It’s not about luck, nor about dreams—it’s real hard work. Every time you enter a position, you should ask yourself: What’s the risk-reward ratio here? How much drawdown can I tolerate? Where’s my stop-loss? If you don’t think these through before opening a position, then just wait for the market to teach you a lesson.

That’s lesson one.