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Want to earn a lifetime's worth of U, the key is not to be busy every day trying to make money, but to ensure that the money you earn can really be kept. On the contract trading path, many people get stuck in emotional trading and reckless chasing. Today, I will share the three most effective rules from practical experience.
**Rule 1: Profits Must Be Locked in Gradually**
The price of the coin rises more than 10%? Don't rush to continue holding. Set a bottom line—if it returns to your buy-in price, sell decisively. Don't fantasize about riding the entire rally. Take 20% profit and lock in half; even if it drops, ensure at least 10% profit is protected before considering action. This is not conservatism, but a way to prevent repeated harvesting.
When earning 30%, be even more cautious, ensuring that at least 15% profit is secured regardless of what happens. Unless you can 100% judge that this is a stage high, it's always more reliable to take profits than to gamble on the next wave of gains. It may seem like earning less, but in reality, it avoids large retracements and keeps profits steadily compounding—this is the correct approach for short-term and medium-term trading.
**Rule 2: Stop-Loss Is the Trader’s Lifeline**
If you buy a coin and it drops to a 15% loss (this number can be adjusted based on risk tolerance, but 15% is a commonly accepted reference), immediately cut your losses and exit. Don’t wait, don’t gamble—sell immediately. This may seem cold-blooded, but it’s actually timely stop-loss—preventing small losses from turning into big pits.
Many people get caught up in "it bounced back later, so I made money," but this mindset is the most dangerous. A wrong entry point is a wrong trade, and paying the price is normal. Every trade must have a stop-loss set, with no exceptions. This is the bottom line of contract trading; without this habit, don’t touch leverage.
**Rule 3: Re-Entry Mechanism After Missing Out**
After selling a coin and it really drops, if you still believe in its future trend, buy back the same amount. The extra trading fee is totally worth it—because this method can completely avoid the gap of missing out.
If after selling the price doesn’t drop much, you can skip re-entry, but once the price rebounds to your sell price, buy back unconditionally. This works best with the stop-loss rule: if the price rises back to the original price, buy back; if it drops again, cut losses decisively. If you find this coin fluctuates frequently, with chaotic price jumps, switch to a different support or resistance level and re-operate; don’t stubbornly hold onto one coin.
**Final Words**
Short-term trading is about discipline: quick in and out is not reckless messing around; chasing hot spots is not blindly rushing; taking profits when the market looks good is not cowardice. Periods of holding cash and observing are also part of trading, not quitting. Instead of desperately trying to find the absolute highest or lowest prices, focus on earning controllable, stable profits—this is much more reliable than risking for huge gains.
In the crypto world, it’s better to find the right direction and follow the rhythm than to blindly stumble around. The direction is already clear; the rest depends on whether you can stick to your plan.