8 Principles for Contract Traders' Survival: From "Account Burnout" to Stable Trading Style

Rhythm is more important than courage; reliable discipline is more trustworthy than luck. Many people hear the word “contract” and immediately feel scared, thinking about account burnouts and hitting zero overnight. In fact, I’ve been through that phase too: once losing heavily in just a few hours, with almost nothing left in the account. That feeling is enough to remember for a lifetime. But later, I realized: contracts are just tools. Like driving — knowing how to drive means traveling safely, not knowing how to drive means accidents are hard to avoid. After years of bumps and setbacks, from multiple losses to stable trading phases, I’ve distilled 8 core principles below to limit risks and preserve capital. Principle 1: Focus Only on Two Main Cryptocurrencies Prioritize Bitcoin and Ethereum. The reason is simple: high liquidity, “clean” volatility, hard to manipulate by a small group. Altcoins and contracts can fluctuate very strongly, which looks attractive but carries huge risks. Slippage, wide spreads, sudden “whale” withdrawals can wipe out stop-loss orders in an instant. Such trading is more like betting than investing. Principle 2: Short When There Is Clear Confirmation Shorting is not about guessing the top. Only enter orders when the market gives clear signals — for example, the H4 timeframe is repeatedly dominated by moving averages. One instance might be random, two might be coincidence, but three usually indicate a trend. Set stop-loss wide enough to give the market room to fluctuate, avoiding being “swept” by noise. Principle 3: Buy Only When There Is a Safe Bottom Zone Bottom fishing is a difficult skill. Catching it in the middle is even more dangerous. Wait for: Price to return to the old bottom zone on the daily chart Oversold signals Panic selling often creates good opportunities, but only if you have enough patience to wait for confirmation. Missing a dip is better than rushing to catch falling knives. Principle 4: Losses Must Be Paused When daily losses exceed acceptable limits, stop trading and take a break. The most dangerous thing is trading in emotional states. Losing control can lead to a series of losses very easily. Accepting small losses is part of the game — it’s much better than burning your account. Principle 5: Enter Trades in Parts, Not All-In Use small positions to “test the waters,” and increase only after profits are realized. For example: with a 100 million VND account, only use up to 10 million VND per trade. If wrong, a stop-loss only loses a small part, not affecting the entire account. This helps keep your mindset stable and avoid impulsive decisions. Principle 6: Manage Profits with Trailing Stops Contracts follow volatility. If you don’t lock in profits, the market can take them back very quickly. When profits reach 2–3 times the initial risk: Take partial profits Use trailing stops on the remaining position to protect gains No need to ride the entire wave. Securing the middle part is already a success. Principle 7: Periodically Withdraw Profits Each month, withdraw a portion of profits to your wallet. This helps: Control capital size Avoid getting caught up in screen numbers Money in the account is just a number. Money withdrawn is real money. Principle 8: Bad Trading Streaks Require Rest If two consecutive trades are unsuccessful, take a day off. Many account burnouts are not caused by the market but by traders refusing to stop. The market always offers opportunities, but if you leave the game, there’s nothing left to recover. Current Market Perspective Sideways phases and “shakeouts” are most likely to trigger stop-losses. Breakouts without volume are often traps. Conversely, panic sell-offs sometimes open good entry points. Leverage is not a “money printing machine,” but an “amplifier of risk.” Using low leverage (1–2x) helps the account grow slowly but steadily. Consistent accumulation over time is much better than a big win followed by total burnouts. Conclusion The essence of contract trading is risk management, not gambling. Surviving long gives the chance to win big. Discipline and patience are the two most important things. The market is always there. Opportunities always come back. Preserving capital is the first victory. $DASH {spot}(DASHUSDT)