Having seen this many times on exchanges, there's always a wave of newcomers playing out the same storyline: first time trading contracts, placing random orders, the market moves smoothly, XRP doubles or triples in just a few days, and suddenly they feel they are gifted. Then on the third day, reality hits hard—the profits vanish, the initial capital shrinks, and all that’s left are question marks: "Why did it reverse so quickly?"

The market is like that—you think you're smart, but it keeps teaching you a lesson. Surviving and consistently making profits in contract trading is not about luck, but about a deep understanding of the game rules.

**Funding Rate is an Emotional Barometer**

A positive funding rate indicates bullish enthusiasm, often signaling that a local high is near; a negative rate suggests bears are in control, and the downtrend may continue. Understanding the funding rate makes market direction half clear.

**Leverage is a Risk Amplifier, Not a Courage Meter**

Three to five times leverage is the balance point between entering and exiting, allowing participation in the trend while staying alive to see tomorrow. Twenty or thirty times leverage? That’s not trading, that’s gambling with your life. Those who haven't been wiped out in one go are either lucky or haven't reached that moment yet.

**Entry Requires a Sense of Rhythm**

First confirm the main trend, then wait for a suitable pullback point, and act with volume confirmation. Chasing orders results in being harvested by the market.

**Stop-Loss is the Insurance of Trading**

No matter how brilliant the analysis during the session, not setting a stop-loss can turn a winner into a cautionary tale. Exit when it’s time, don’t gamble with the market out of stubbornness.

**Take Profits in Time**

Take 10%-20% profits early; there’s no shame in that. The market is always there, but if you don’t secure your gains, the ducks you caught will fly away, and there will be nothing left.

**Always Leave an Exit Route**

Never hold more than 30% of your position unhedged; this isn’t cowardice, it’s professionalism. The biggest regret isn’t losing money, but missing a good opportunity because you ran out of ammunition.

To stay active in this market long-term, you need a tested strategy system, and thinking and verifying with like-minded people is much more reliable than fighting alone.