Crypto contract trading, to put it simply, is about making money through cognition. The biggest pitfall for beginners is often not misjudging the market but poor position management.

Instead of dreaming of getting rich overnight, it's better to keep risks outside the door.

**Level 1: Control Your Positions and Avoid Impulsiveness**

Ensure that a single open position's margin does not exceed 1% of your total funds, and keep contract position margins within 20%. This way, even a large loss won't fundamentally hurt you. Many start by going all-in and risking everything, but a reverse market trend can lead to liquidation—this is not bad luck, but self-inflicted.

**Level 2: Understand Market Language**

Moving Averages (MA) are simple and useful tools. When the 50-day MA crosses above the 100-day MA, it's a golden cross, indicating a potential upward trend; crossing below is a death cross, signaling possible correction. MACD is more intuitive—longer red bars or shorter green bars suggest trend continuation, but watch out for divergence at tops or bottoms, which may indicate reversals.

Don't ignore resistance and support levels either. Previous highs and lows often determine the rhythm of the market later. Breakthroughs at these key points can be good entry signals, increasing your win rate.

**Level 3: Time Your Entry Well**

A drop of over 5% to a strong support level is a good signal to go long. Conversely, when the price rises over 10% near a resistance level, opening a short position is more prudent. But what if the market is just sideways? My advice is to observe—avoid frequent entries and exits, as transaction fees will eat into your profits gradually.

**Level 4: Always Set Stop-Loss and Take-Profit**

Set your take-profit target at around 8%-10%—take profits when the market looks good. For stop-loss, cut your losses decisively if the price breaks support—don't hold on out of hope. There's also a concept of time-based stop-loss: if your position hasn't shown a clear direction after 4 hours, it's better to close it and save your funds for the next opportunity.

**Level 5: Use Leverage Moderately**

For beginners, leverage within 20x is safer. Over 50x is like walking a tightrope—one jump can lead to liquidation. Before trading with real money, spend 3 to 6 months practicing on demo accounts, clarifying your logic before risking real funds.

Always review each trade afterward—analyze why you made profit or loss. Over time, this will help you develop your own trading system. Remember, contracts are never gambling; they are a direct reflection of your market cognition.

This market is full of opportunities and people working hard. The truly scarce resource is a methodology that can help you achieve long-term, stable profits here.