Crypto Market Contracts【Must-Avoid Deadly High-Frequency Trading Mistakes List】 (Newbie Survival + Veteran Steady Profit, prioritized, of utmost importance)

I. 【Risk Control】Most Fatal! 90% of Liquidations Happen Here (Priority★★★★★)

1. Opening a position without a stop-loss, holding on with luck, small losses turn into deep traps, ultimately leading to liquidation/huge losses (The only iron rule of contracts: no stop-loss, no opening).

2. After setting a stop-loss, manually cancel it when minor slippage causes a small loss, then double down and hold, completely breaking risk control limits.

3. Overusing high leverage: beginners start with 20/50/100x, even if correct on the direction, a small retracement can trigger forced liquidation; earning 10 times isn't enough to cover 1 loss. (Always remember: low leverage = high tolerance, high leverage = high death rate, only open 2-5x).

4. Overweight positions: single trade > 10% of total funds, or all-in, one loss can cause over 30% drawdown, losing mental stability and leading to chaotic subsequent operations.

5. Doubling down after losses to average down (buying more as it falls, buying more as it rises), contracts are not spot; adding leverage accelerates zeroing out. Only add positions when profitable; exit decisively when losing.

6. Using borrowed funds/living expenses/necessities to trade contracts, emotional attachment to gains/losses, panic when earning a little, anxious when losing a little, completely unable to execute rational trading plans.

II. 【Trading Strategy】Core Cause of Small Gains and Big Losses (Priority★★★★)

1. Contrarian trading: the main trend is bearish (e.g., BTC daily chart with continuous declines below moving averages), but insist on betting on rebounds; in a bullish trend, guess the top to short; contrarian success rate always <30%.

2. Frequent trading, over-manipulation: opening positions without meeting conditions, itching to trade on minor fluctuations, 5-10 trades per day, incurring fees + slippage + small stop-loss, accumulating losses over time. The core of contracts is “big gains, small losses, fewer trades, more patience.”

3. Only focus on small timeframes, ignore larger ones: e.g., opening trades based on 5-minute signals without considering 4-hour/daily trend; high probability of false signals, being exploited by big players. (Principle: big timeframe sets direction, small timeframe finds entry points).

4. Blindly bottom-fishing/top-picking: always think “price has hit the lowest/highest point,” but in contracts, there are no absolute tops or bottoms; once a trend forms, it can extend far beyond your expectations. Don’t guess tops/bottoms, follow the trend.

5. Ignoring funding rates of perpetual contracts: high funding rates (>0.05%) long positions pay fees daily; negative funding rates for shorts do the same, increasing holding costs or getting “funding-caught.”

III. 【Mindset & Human Nature】Most Difficult to Change, Ultimate Profit Barrier (Priority★★★★)
In the contract market: 30% skill, 40% risk control, 30% mindset. When mindset collapses, skills and risk control fail, which is the core reason you previously read “Trading Psychology Analysis”!
1. FOMO (Fear of Missing Out): seeing market surge/drop, others making money, no position, blindly chasing, entering at the top/bottom—classic “leek” behavior.

2. Earning a little, panicking, early take-profit: earning 1-2%, quickly closing, missing out on 80% of the trend; conversely, holding through losses, small wins, big losses, long-term loss. (Remember: let profits run, cut losses short).

3. Losing composure after losses, revenge trading: after a loss, wanting to recover immediately, ignoring opening conditions, arbitrarily adding to positions and leverage, leading to bigger losses and a vicious cycle.

4. Getting cocky after profits: thinking “I’m a genius,” increasing position size, leverage, canceling stops, abandoning discipline, market will teach you a harsh lesson.

5. Over-focusing on the market: watching all day, every small fluctuation affects mood, even staying up late to monitor, fatigue trading = mistakes, ultimately driven by emotions. (Suggestion: set stop-loss and take-profit after opening, focus only on key levels, don’t watch constantly).

IV. 【Cognition & Details】Easily Overlooked, but Small Leaks Add Up (Priority★★★)

1. Only trade altcoin contracts: small market cap, heavy manipulation, unpredictable rises and falls; even with good skills, prone to being manipulated by big players. Prioritize BTC/ETH, highest tolerance.

2. Believe in “big traders’ calls” or “insider info”: others’ opinions are just references; contracts don’t have 100% win rate. When copying trades results in losses, you can’t even find the reason. Independent judgment is the only survival method.

3. No review: don’t know why you gained or lost; repeat the same mistakes; can never improve. (Your trading plan template must include a review section; after each trade, fill it out, even if only earning 10U).

4. Holding overnight/weekend without protection: crypto trades 24/7, weekends/early mornings prone to sudden negative news (regulations, platform announcements), large volatility, risking big drawdowns or liquidation. Set more conservative stops for overnight positions.

5. Ignoring platform slippage/insertion: during opening/closing, prices may slip slightly, especially in volatile markets; slippage can cause actual entry/exit to deviate from expected. Avoid key levels like round numbers for stops to prevent precise insertion losses.

V. 【Capital Management】Key to Long-Term Survival, Determines How Far You Can Go (Priority★★★★)

1. Not withdrawing profits: leaving all profits in the account to increase positions; profits are “floating gains,” only actual profit is transferred to wallet. Profit should be withdrawn; use profits to trade, keep principal intact.

2. Chasing “get rich overnight”: always aiming to multiply a single contract several or dozens of times; this mindset ignores risk control, over-leverages, and often results in zeroing out. High returns are compound results, not single big wins. Consistently earning 2-5% and compounding long-term exceeds your imagination.

3. Not calculating risk per trade: your template requires “single trade risk ≤ 1-2% of total funds,” which is the baseline! Even with 100% confidence in the market, never exceed this ratio. One big loss can wipe out all previous profits.

✅ Lastly, a final note on 【Core Mindset of Contract Profits】 (Remember this sentence, it’s more valuable than reading 100 tutorials)

Crypto contracts are not about who earns faster, but about who survives longer. Controlling losses steadily and letting profits grow naturally makes you an absolute winner.
Your previous trading plan + this pitfalls avoidance list already form a complete 【Newbie Steady Profit System】. Strict adherence will help you avoid most pitfalls; the rest is about gradually refining skills and accumulating experience.