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Starting with a few hundred or a few thousand yuan, aiming to make a name in the crypto world, the key isn’t how advanced your tech is, but how long you can survive.
The harsh truth about retail traders losing money: 90% isn’t because they can’t read the market correctly, but because they get wrecked by impulsive all-in bets. Liquidation is like a crematorium—no matter how much capital you have, it can’t save you. Those who survive in the market share a common trait—they treat stop-loss as breathing, and take profits as a daily habit.
**How to trade contracts short-term without falling into traps**
If you’re trading contracts, remember this iron rule: never use leverage over 5x. Why? Small funds can’t withstand a sudden reverse spike; you’ll be wiped out instantly. Each trade’s stop-loss must be strictly within 3%, and profit targets should be set at 6%-8%.
Sounds like the profit is a bit thin? But I used 10,000 USDT to do short-term ETH trades—losing 300 USDT and then cutting losses decisively, earning 600-800 USDT and stopping immediately. It may seem like only small gains each time, but after two weeks of this approach, your account can grow by 30%-50%. The real secret to short-term trading is accumulating frequent small wins—don’t expect huge profits in one shot.
**Spot trading for mid-term is more stable**
If you want a 40% or higher mid-term increase, you must endure 5%-10% shakeouts. Not setting a stop-loss is like suicide; once the key support levels (previous lows or 4-hour moving averages) break, you must exit immediately. Take profits in two steps: when gains reach 30%-35%, sell half to secure profits; for the remaining position, use a trailing stop-loss, and if it retraces 8%, close all. Nobody can sell at the absolute top, but this method helps you often sell near the second-highest point.
**Position size determines how peacefully you can sleep**
With the same 10,000 USDT capital, some split into three parts, others go all-in. What’s the difference? With a small position, an 8% loss still lets you sleep soundly; with a heavy position, a 2% loss can make you anxious. The painful lesson is that heavy positions without stop-loss are like driving at high speed without brakes—maybe fine most of the time, but when trouble hits, you’ll crash.
Stop-loss isn’t about giving up; it’s insurance for your account. Take profit isn’t the end goal, just a stage dividend. Before placing an order, ask yourself: how much can I lose at most? Don’t daydream about how much you can make. Market opportunities are always there, but the more capital you risk, the less you have left.
Most people get caught in a loss cycle not because they aren’t trying hard enough, but because they simply don’t have a trading system that suits them. The bull market is waving at you ahead—what matters most is having the right method.