Crypto Market Contracts【Must-Avoid Deadly High-Frequency Trading Mistakes List】 (For Beginners to Stay Alive + Veterans to Steady Profits, Prioritized)

1. 【Risk Control】The Most Deadly! 90% of Liquidations Happen Here (Priority★★★★★)

1. Opening a position without a stop-loss, holding on with luck, small losses turn into deep traps, ultimately leading to liquidation/huge losses (The only rule in contracts: No stop-loss, no opening position).

2. After setting a stop-loss, manually cancel it when small slippage occurs, then double down and hold, completely breaking risk control limits.

3. Overusing high leverage: Beginners start with 20/50/100x, even if correct direction, a small retracement can trigger forced liquidation; earning 10 times isn’t enough to offset 1 loss. (Always remember: Low leverage = high tolerance, high leverage = high death rate, only open 2-5x).

4. Overweight positions: Single trade > 10% of total funds, or go all-in, one loss can cause over 30% drawdown, leading to emotional breakdown and chaotic subsequent operations.

5. Averaging down after losses (buying more as it falls, buying more longs as it rises), contracts are not spot; leverage + averaging = accelerating zeroing out. Only add to positions when profitable; exit immediately when losing.

6. Using borrowed funds/living expenses/necessities to trade contracts, emotional trading driven by profit/loss, panic when small profit, panic when small loss, impossible to execute rational trading plans.

2. 【Trading Strategy】The Core Cause of Small Gains and Big Losses (Priority★★★★)

1. Contrarian trading: The main trend is bearish (e.g., BTC daily downtrend breaking below moving average), but insist on buying the rebound; in a bullish trend, guess the top to short. Contrarian success rate always <30%.

2. Frequent trading, over-trading: Opening positions without meeting conditions, itching to trade on small fluctuations, 5-10 trades per day, accumulating fees + slippage + small stops, inevitably losing over time. The core of contracts: “Make big gains, cut small losses, trade less, observe more.”

3. Only focus on small timeframes, ignore larger cycles: For example, opening trades based on 5-minute signals without considering 4-hour/daily trend; high probability of false signals, being exploited by big players. (Principle: Big cycle sets direction, small cycle finds entry points).

4. Blindly bottom-fishing/top-topping: Always think “price has hit the lowest/highest point,” but in contracts, there are no absolute tops or bottoms; once a trend forms, it will continue far beyond your expectations. Don’t guess tops/bottoms, follow the trend.

5. Ignoring funding rates of perpetual contracts: High funding rate (>0.05%) long positions are like paying fees daily to shorts; negative funding rate for shorts, same logic, increasing holding costs or getting “funding rate hunted.”

3. 【Mindset & Human Nature】The Most Difficult to Change, the Ultimate Threshold for Profitability (Priority★★★★)
In the contract market: 30% technical, 40% risk control, 30% mindset. When mindset collapses, technical and risk control fail, which is the core reason you previously read “Trading Psychology Analysis”!
1. FOMO (Fear of Missing Out): Seeing the market surge/drop sharply, others making money, no position, blindly chasing highs and lows, entering at the top/bottom—classic retail behavior.

2. Getting nervous at small profits, early take-profit: Taking profits at 1-2%, missing out on 80% of subsequent trend profits; conversely, holding onto losses, risking small wins and large losses, leading to long-term losses. (Remember: Let profits run, cut losses short).

3. Losing composure after losses, revenge trading: After a loss, wanting to quickly recover, ignoring entry conditions, arbitrarily adding to positions and leverage, resulting in bigger losses and a vicious cycle.

4. Becoming arrogant and inflated after profits: After a few wins, thinking you’re a “master,” increasing position size, leverage, canceling stops, abandoning discipline, market will teach you a harsh lesson.

5. Over-focusing on the chart: Watching the screen all day, every small fluctuation affects your mood, even staying up late to monitor, fatigue trading = mistakes, ultimately driven by emotions. (Suggestion: Set stops after opening, only watch key levels, don’t obsess over every move).

4. 【Cognition & Details】Easily Overlooked but Accumulate Over Time (Priority★★★)

1. Only trade altcoin contracts: Altcoins have small market cap, severe control, unpredictable rises and falls; even with good tech, prone to manipulation, pump-and-dump. Prioritize BTC/ETH, highest tolerance.

2. Believe in “big traders’ signals” or “insider info”: Others’ opinions are just references; contracts don’t have 100% win rate. If you follow blindly and lose, you won’t find the reason. Independent judgment is the only survival rule.

3. No review: Don’t know why you made profits or losses; repeat the same mistakes, never improve. (Your trading plan template must include a review section; after each trade, fill it out, even if only earning 10U).

4. Holding overnight/weekend without protection: Crypto trades 24/7, weekends and early mornings prone to sudden bad news (regulations, platform announcements), large volatility, risking big drawdowns or liquidation. Set more conservative stops for overnight holds.

5. Ignoring platform slippage/slip points: During opening/closing, prices may slip slightly, especially in volatile markets, causing actual entry/exit prices to deviate. Avoid key levels like round numbers for stops to prevent precise slippage losses.

5. 【Fund Management】The Core to Long-Term Survival, Determines How Far You Can Go (Priority★★★★)

1. Not withdrawing profits after gains: Keep all profits in the account to add positions; realized profits are “floating gains,” only the funds withdrawn to wallet are true profits. Profit should be withdrawn, use profits to trade, keep principal unchanged.

2. Chasing “get rich overnight”: Always want to multiply your capital several times in one trade; this mindset ignores risk control, over-leverages, and often results in zeroing out. High returns in contracts are due to compound interest, not single big wins. Consistently earning 2-5% and compounding long-term exceeds your expectations.

3. Not calculating risk per trade: Your template requires “single trade risk ≤ 1-2% of total funds,” this is the bottom line! Even with 100% confidence in the market, never exceed this ratio. One big loss can wipe out all previous profits.

✅ Finally, a key【Core Mindset for Contract Profits】(Remember this, it’s better than reading 100 tutorials)

Crypto contracts are not about who earns faster, but about who survives longer. Controlling losses steadily and letting profits grow naturally makes you the ultimate winner.
Your previous trading plan + this pitfall avoidance list already form a complete【Beginner Steady Profit System】. Strictly follow it to avoid most pitfalls, then focus on refining skills and accumulating experience.