Struggling with losing money despite predicting the market correctly? This vicious cycle has troubled me for a long time.

I once lost 800,000 in half a year. Ironically, my market direction judgment during that period was actually correct. Only after carefully reviewing my trade history did I realize—the problem wasn't with the market itself, but with the unseen traps I fell into in contract trading.

**Trap 1: Greed at the Entry Point**

I would go all-in as soon as the market started moving. It sounds brave, but in reality, it creates opportunities for the big players. They often generate false signals at the beginning of a trend, using a quick reverse K-line to wipe out greedy retail traders. After being swept out, I looked back and saw the market indeed moved in the direction I predicted. But I had already been liquidated.

**Trap 2: Rigid Stop-Loss Strategies**

A fixed 3% stop-loss sounds scientific, but in highly volatile Bitcoin contracts, it becomes ineffective. The market makers know where retail traders set their stop-losses. In a high-volatility market, a single false breakdown can sequentially wipe out these "transparent" stops. I was swept three times in a week by fake breakdowns, losing not just my principal but also my mental state. Eventually, the market did surge in the direction of my analysis, but I was already out.

**Trap 3: Extreme Position Management**

Going all-in with a single trade seems efficient, but in reality, it leaves life and death to a single K-line. No matter how correct your directional judgment is, it can't withstand counter-movements. That night, I watched my account balance drop from hundreds of thousands to zero, and only then did I truly understand the importance of risk control.

**Three Principles of Reversal**

After that, I completely changed my strategy. First, never be fully invested. Divide a trade into three parts to leave room for adjustments and adding positions. Staying alive is more important than making quick money. Second, stop-loss isn't a fixed value but should be flexibly adjusted according to market volatility. This makes the big players' sweep strategies ineffective. Third, the simplest but hardest to do—when the market is unclear, stay in cash and wait.

By following these rules for a year, my account tripled. Not because I became a trading genius, but because I survived longer and reduced unnecessary liquidations.

In the crypto world, the real winners are never those who predict the correct direction most accurately, but those who can survive until the end. I paid my tuition of 80,000 to learn this lesson.