Contract trading is like a mirror; what it amplifies is never your gains but your inner greed and fear. I have stumbled in this market, and every loss has been exchanged for lessons with real money. Today, I want to share these insights.

First, it’s important to understand the meaning of funding rates. Positive rates usually indicate overheated market sentiment and crowded longs; negative rates reflect dominance by shorts. Instead of blindly following the trend, it’s better to look at the funding rate first and then the candlestick charts— the former more accurately reflects the true market attitude. Combining this with trend analysis, such decision-making will be clearer.

Regarding leverage, many treat it as a magic wand to turn losses into profits, but it’s just a tool. Leverage of 3x to 5x is enough to let profits run; but once it exceeds 10x, you’re dancing with liquidation. The most important point: staying alive is more important than making money, and position management always comes before trend judgment.

Building your own trading rhythm is crucial. My approach is to determine the main direction on the daily chart, completely ignoring short-term noise; wait at support and resistance levels on the 4-hour chart—only act when volume and price align; set stop-losses before entering a trade, and once triggered, exit decisively without hope; take profits in batches at 10%-20%, and don’t be greedy to eat the last piece of meat.

There’s also a rule many overlook: always reserve bullets for the next opportunity. Single-position size should never exceed 30%. The most terrifying scenario isn’t losing money now, but when a big opportunity arrives, you no longer have the chips to participate.

Those who survive long in this market are often not the best predictors, but their self-discipline is top-notch. Stability, patience, and waiting—these three words are the answers I’ve derived after countless late-night reviews. Luck might let you win once, but system and discipline will let you win ten times. If you’ve ever lost control amid volatility, now might be the time to use rules to find your direction again.