In this market, many people are pondering how to make quick money. But what I want to tell you is that learning to avoid losses is often more important than learning to make money.

I have a friend who invested 2000U and turned it into 38,000U in just one month. You ask me how he did it? Actually, there’s no big secret—just one core logic: first, calculate the worst-case scenario clearly, then consider how much you can earn.

Most people who lose money make the same mistake: they rush in before they’ve thought about what to do if they lose. What is this called? This is called gambling, not trading.

**How to Play Short-term Contracts to Survive Longer**

I often do short-term contracts, with 5x leverage as my bottom line. Under this leverage, I set very strict rules for myself: take profits at 6%-8%, cut losses immediately if it exceeds 3%.

I’ve done a lot with ETH. For small orders of 10,000U principal, I cut losses decisively at 300U loss, and run away after earning 600-800U. Over two weeks, this discipline often earns me 5,000U more than those dreaming of doubling their money. Don’t underestimate these numbers; by the end of the year, the accumulation is different.

Many people will frown upon this: “Isn’t this too conservative?” But conservative people live longer. When the principal is small, a higher leverage can still be tolerated. Even a one-point move can be deadly.

**The Way to Survive in Spot Mid-term Trading**

If you want to take a 40% gain in spot mid-term trading, you need to withstand a 5% fluctuation during the process. You can’t be shaken out. I usually set my stop-loss at the previous low or the 4-hour MA60 line; if it breaks, I leave immediately.

When it reaches 35%, I sell half first, and set a trailing stop for the remaining half. If it retraces 8%, I close everything. I don’t want to see the money I’ve earned fly away again. Many want to sell at the highest point, but I tell you, being able to sell in the high zone already puts you ahead of most people.

**Position Management Is the Life and Death Line**

I must emphasize this point. The same 12,000U, divided into four parts for operation, versus full position all-in, risk is like two different worlds.

Dividing positions is like climbing steadily; going all-in is like jumping off a cliff—only there’s a trampoline below, but you might not bounce back.

Holding a large position without stop-loss? That’s like removing the brakes on a highway. Disaster will come sooner or later.

**The Iron Rule I Always Follow**

Stop-loss isn’t to save that little bit of money; it’s to save your life. Take-profit isn’t some pre-set target; it’s the reward the market is willing to give you.

Before each trade, you must first calculate the worst-case scenario—how much can you lose at most? Then consider the profit potential. If you do it in the wrong order, you’ll just be waiting to be harvested.

Market opportunities are always there; what’s truly lacking is the principal to survive until the next opportunity. When the market moves, it may not be yours. But as long as you’re still here, there’s always your chance. Don’t be scared by one or two pullbacks, and don’t get blinded by a few wins.

This is all the practical experience I have. Those who can survive in this circle are those who have embedded risk management into their bones.