In the contract trading business, the most important thing isn’t getting rich overnight, but accumulating steadily over time. Today, I want to share a few survival rules I’ve summarized through years of hands-on experience.

First rule: Once you have profits in hand, you need to find ways to protect them. For example, if you enter a certain coin and your unrealized gains hit 10%, don’t just get excited. What if the price pulls back close to your entry point? Exit decisively—don’t hesitate. If your profit reaches 20%, set a rule for yourself: you must lock in at least 10% profit on this trade, unless you’re 100% sure this is the local top. Similarly, when your unrealized gains hit 30%, make sure to secure at least 15% before considering an exit. What’s the benefit of this approach? Even if you can’t predict the peak, your profits will still have room to grow.

The second rule is even more critical: accept your losses. If your position drops by 15% after you buy (you can adjust this threshold based on your risk tolerance), don’t fantasize about a bounce—cut your losses when you need to. Some people always think, “Let’s wait, maybe it’ll come back up”—this mindset is the most dangerous. What if it really does rebound? Then it just means your entry timing was off, and the trade itself was a mistake. Mistakes come with a price—that’s normal. Remember, you must always set a stop loss before opening any position. This isn’t a suggestion; it’s a survival baseline.

The third rule is a bit counterintuitive: what if you “sold too early”? If you sell a coin and it drops, but you still believe in the project, buy back the same amount at your original price. This way, your coin holdings stay the same, but you’ve pocketed the price difference. On the flip side, if the price doesn’t drop after you sell and instead climbs back to your sell price—then you must buy back unconditionally, even if it means paying a bit more in fees.

This strategy can be used together with your stop loss rules: buy back when it returns to your cost price, and if it drops again, cut your losses and exit. If you repeat this several times and find that a coin’s price just keeps bouncing around your cost basis, it might be time to pick a different entry or a different coin altogether.

Ultimately, short-term contract trading is all about discipline. Quick ins and outs don’t mean acting blindly, chasing hot trends doesn’t mean following the crowd, taking profits isn’t cowardice, and staying on the sidelines doesn’t mean quitting the game. As for entry and exit points? Don’t always try to buy at the lowest or sell at the highest—that’s something only the gods can do.

It’s hard to go far alone; sometimes following a reliable rhythm is actually safer. The path is already laid out—it’s just up to you whether you can keep up.