Contract trading is like walking a tightrope—any misstep can turn a full position into zero in an instant. Some rely on luck to turn things around, but most bend under the temptation of leverage.

I turned $3,000 into $160,000, not because of luck or some secret weapon, but purely by adhering to five fundamental risk management principles. I have traded coins like $SUI, $XRP, and $ZEC, and those who survive are always traders who understand self-discipline.

**Splitting your position is the key to survival**

Divide $3,000 into 10 parts, taking only $300 each time to enter or exit, using 100x leverage. What are the benefits? If your market direction is correct, a single point move can double your profit; if wrong, a timely stop-loss prevents serious damage. This isn’t cowardice; it’s wisdom for longevity.

**First Law: Stop-loss must be quick**

Watching your account decline, many deceive themselves—"Wait a bit, it will rebound." But the market doesn’t give hesitation any face. When it hits your preset stop-loss level, exit immediately. Accept small losses; it’s always better than risking everything for a miracle. Many margin calls happen because traders hesitate at the critical moment of "just one more look."

**Second Law: Stop after five consecutive losses**

When the market is chaotic, stubbornly fighting it is equivalent to seeking death. Set a "circuit breaker"—after five consecutive losses, forcibly close the trading system and take a break for a day. When the next day’s market becomes clearer, re-enter. This rule sounds simple, but following it can save your life.

**Third Law: Take profits promptly**

The numbers in your account are virtual; until you withdraw to your wallet, they can vanish in a black swan event at any time. My rule is to withdraw at least half of every $3,000 profit. Holding profits in hand changes your mindset and makes your decisions more rational. Many people fail because they always want to earn a little more and end up losing everything.

**Fourth Law: Follow the trend, avoid choppiness**

In a strong uptrend or downtrend, 100x leverage is like printing money. But in sideways markets, it becomes a meat grinder. Most losses happen when traders think "it will rebound" or "it should go up again" without clear direction. Without a definite trend signal, it’s better to stay out and wait rather than blindly enter a trade. When the trend signals are clear, your chances of a one-shot victory increase.

**Fifth Law: Never risk more than 10% of your capital**

Going all-in is a gambler’s move. To succeed in crypto, you must first survive. Using a $300 position each time, you can afford to lose and still win steadily. Small positions foster a calm mindset, and a calm mind leads to rational decisions.

**Contracts are not a magic bullet for overnight riches**

True winners understand that contract trading is fundamentally a long-term game. Those who fantasize about multiplying their capital a hundredfold often end up losing their principal. Embed these five rules into your bones, follow them strictly, and you’ll have a chance to see long-term gains in the crypto space.

Risks are always present, but they can be managed. Choose the right methods, stick to your bottom line, and you can steadily advance in this market.