Everyone who has traded contracts knows that this thing is like a double-edged sword. Used correctly, your account balance can grow rapidly; used wrongly, your principal can disappear in the blink of an eye.

My own approach is very aggressive—starting with 300U, splitting it into ten parts to play, each part being 30U. I leverage each 30U with 100x leverage. Sounds crazy? It is. But because it’s so aggressive, a complete risk management system is even more necessary to support it.

If I had to share the secret to surviving in trading all these years, it would be these five bottom lines, none can be missed:

**First: Admit losses when wrong, don’t try to catch the rebound**

Too many people’s common mistake is to keep hoping for a rebound after being caught in a position. But the market doesn’t buy that. When it hits the stop-loss level, you should cut decisively. I’ve seen too many cases where it should have only lost a small amount, but stubbornly held on and ended up liquidated. Instead of betting on a rebound, better to preserve your capital for the next opportunity. That hesitation could be the difference between everything and nothing.

**Second: Stop after five consecutive losses**

Sometimes the market is just chaotic, and pushing through in such times is pure self-destruction. My rule is to shut down after five wrong trades in a row—no more touching the computer. Taking a day off often clears the mind. There are phases in the market where aggressive trading isn’t suitable; it’s not retreat, but survival until the next round.

**Third: Withdraw profits once earned, don’t leave everything in the account**

The numbers in your account are just floating figures. As long as you haven’t withdrawn, they can vanish at any moment. My habit is to withdraw at least half once I make 3000U. This ensures I lock in gains and don’t risk losing everything, while still keeping enough capital to continue trading. It also provides peace of mind. Especially for volatile coins like $ETH, this approach is crucial.

**Fourth: Only trade trend-following positions, avoid choppy markets**

In a trending market, 100x leverage is like printing money. But once the market turns choppy, that same 100x leverage becomes a meat grinder. I prefer to stay flat when there’s no clear direction, waiting for a confirmed trend before making a decisive move. This greatly improves success rates and reduces losses.

**Fifth: Never risk more than 10% of your principal on a single position**

Don’t think about going all-in. To win, you first need to survive. I usually trade with just 30U each time. The benefit is that I can afford to lose and still be steady. Smaller positions keep my mindset stable, allowing me to operate more aggressively when appropriate. It may seem conservative, but it’s designed to keep rationality intact while being bold.

Ultimately, contract trading isn’t a myth of getting rich overnight; it’s a long-term battle. Those who survive until the end and count their money happily are never the gamblers who go all-in on every trade, but those who stick to these basic disciplines. Keep these five rules in mind, and you’ll have a better chance to stay in the game and enjoy the longest winning streak.