2025-12-31 08:26:39

This year's biggest insight from contract trading is essentially a journey of mindset and discipline.

The core realization is this: contracts are not primarily used to bet on the direction, but rather as tools to manage risk and amplify trends around spot holdings. It sounds simple, but actually doing it is difficult.

My trading framework is "Set the direction with spot, catch swings with contracts." As long as there is a clear trend judgment in the spot position, I consider taking action on the contract, using low leverage of 3-5x to add to positions or hedge in line with the trend. High leverage? I never touch it.

Those options strategies that enhance returns or have safety mechanisms, I treat them as a "safety cushion." When the market is volatile, I rely on these products to earn extra income on the spot holdings, rather than using them for one-sided speculation. The benefit of this approach is obvious—losses are controlled, and profits won't be wiped out by excessive leverage.

By 2025, if I learn only one thing, it is: manage your positions, manage your leverage, and leave the rest to time.

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JustHereForAirdrops

· 21h ago

That's so right. Combining low leverage with spot trading is the way to go. High leverage is really just about giving away money. Mindset and discipline are the keys to long-term profit. Setting the direction with spot and catching swings with contracts is basically the pinnacle of contract trading strategies. People who avoid high leverage will eventually make it to the end. Manage your positions and leverage well—simple, straightforward, and effective. That's just how it is. Using options as a safety cushion is indeed a fresh perspective. It's much clearer than those who blindly chase high returns. Honestly, less than 1% of traders can maintain discipline and self-control. Most are still gambling on one-sided trades.

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digital_archaeologist

· 21h ago

That's so true, low leverage is really the key to lasting the longest. I've been using the spot direction and contract wave-catching strategy for two years, and I can honestly say it has saved me several times. High leverage is suicide, plain and simple. This is true trading wisdom, but unfortunately most people can't learn it. Position management is an eternal truth, and leverage multiples are the line between life and death. Honestly, seeing the 3-5x number makes me feel at ease; at least it's someone who is sober talking.

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SilentObserver

· 21h ago

That's right, low leverage is the way to go. Aren't there still many cases of high leverage leading to total loss? Spot trading primarily, with contracts as an auxiliary. I'm also exploring this framework, just worried about execution. Discipline and mindset are easy to talk about, but the real test is in the moment of loss. Leverage is like poison; once you taste the sweetness, you can't stop. It takes self-discipline to survive longer. Being serious is much more interesting than those who just blow their orders every day. Just listen, but ultimately, you have to walk this path yourself. Control your hands, wait for time—this is indeed the hardest and most profitable.

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RugDocDetective

· 21h ago

Honestly, I agree with this logic, but most people can't do it. The part about high leverage really hit me; so many people die right there. Spot trading is the anchor, futures are just a tool. It sounds simple, anyone can say it. The key is you have to truly withstand the wave of retracement without getting liquidated, which is the hard part. --- Another "I finally understood" story, but this time the logic is indeed clear. 3-5x leverage is really much more stable. I've seen too many people go from 5x to 50x and end up losing everything. --- This framework is quite practical, but I'm just worried that neither the writers nor the readers can actually execute it. --- So the core is actually self-discipline, but who has truly achieved it? --- Managing leverage well is the most valuable advice, but unfortunately most people forget it after reading.

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