In contract trading, there are many who lose money, but most fall into the same trap—placing orders based on feelings with no systematic approach. Want to achieve stable profits? Relying on luck alone won't cut it.

After years of navigating the market, I’ve summarized 7 practical iron rules, each learned through blood and tears. Follow them carefully, and they can help you avoid most rookie mistakes.

**Fundamentally, money management always comes first.** Divide your account funds into 5 parts, only use 1 part for each entry, and set a fixed stop-loss at 10 points. The benefits of this setup are obvious—even if you make the wrong judgment, a single loss is only 2% of your total funds. It would take 5 consecutive wrong calls to lose 10%. Conversely, when making profits, set take-profit at more than 10 points to avoid deep drawdowns.

**Following the trend is the core of trading.** Rebounds during a downtrend are often trap setups by the market makers—don’t trust them; instead, pullbacks in an uptrend are genuine opportunities. Compared to blindly bottom-fishing, low-cost entries have a much higher success rate, significantly increasing your win rate.

**Avoid coins that surge wildly.** Whether mainstream coins or small-cap tokens, short-term spikes usually don’t last long. High-level stagnation is a warning sign; a decline will follow. Never chase with a gambler’s mentality—that’s just giving away money.

**The MACD indicator is a helpful tool.** When DIF and DEA form a golden cross below the zero line and break above zero, it’s a relatively reliable entry signal; conversely, when a death cross occurs above zero, reduce your position immediately—don’t hesitate.

**Understanding volume-price relationships is key to winning.** Sudden high volume during a low consolidation? That’s a sign of takeoff, keep a close watch. Conversely, if volume increases at a high level but prices don’t rise, exit immediately—trading volume in crypto is like a conductor’s baton.

**Only trade opportunities in an uptrend.** A short-term opportunity appears when the 3-day moving average is rising; a mid-term trend is indicated when the 30-day is rising; a main upward wave is confirmed when the 84-day is rising; and a long-term layout is suggested when the 120-day is rising. Layered operations like this improve win rates and save effort.

**Weekly review is a must.** Every week, review your position logic, check if the weekly K-line matches your initial judgment, and adjust your strategy if there are deviations. Don’t let yourself become a passive follower or a caught chaser.