Having navigated the digital asset market for years, I have seen too many people become overnight millionaires through contract trading, and even more who lose everything in an instant. To be honest, compared to riding a roller coaster, trading perpetual contracts is even more adrenaline-pumping — you could experience 50x or 100x gains at any moment, but also face the despair of liquidation at any time.

I’ve tried various schemes like Ponzi schemes, arbitrage, and different types of contracts, and I’ve had my fair share of being exploited by market manipulators. In the end, I realized that the difference between those who make money and those who lose money isn’t luck, but a few key points.

**Mindset is the first line of defense**

Many people misunderstand this. Managing your mindset doesn’t mean you should become an emotionless robot, nor does losing money mean you should pretend nothing happened. What is the true mindset? It’s believing deep inside that you can succeed, and trusting that current losses are just part of the process. Most importantly, when you see your account plunging, you must keep your head clear. Don’t blindly add to your position, don’t act impulsively, analyze each trade rationally. This can save your entire fortune.

**Money management is the condition for survival**

There’s a saying that’s very true: “As long as the green mountains remain, you’re not afraid of not having firewood.” Never have the idea of going all-in, because once you think that way, the market will fulfill your hopelessness. You need to calculate your maximum tolerable loss based on your longest consecutive losing streak in history, and then manage each position accordingly. This isn’t conservatism; it’s the only way to stay alive and keep playing.