# Most People Lose Money Trading Contracts—How to Trade Consistently Profitably

This article is exclusively sponsored by @bcgame #BCGame

## I. Basic Rules

**1. Only trade BTC/ETH**

**2. Entry Strategy for Short Positions**
- Primarily use the moving average cluster above the 4H timeframe's key resistance levels to determine batch short entries
- For example: If the MA60 on the 4H timeframe continuously suppresses price, use this moving average as the timing for short entries
- Generally use support levels at the same or one level higher timeframe for batch long entry points

**3. Stop Loss Placement**
- Place stops below the previous low after the price spikes down and then rebounds
- Example: If support is at 2320, the price spikes to 2310, then place the stop below 2310, around 2300

**4. Stop Loss Capital Management**
- Stop loss = 20% of total capital; stop trading for the day once reached
- **4.2.** Generally make 2 trades per day; control single trade stop loss at 10%
- Keep position size consistent for each trade

**5. Position Sizing Strategy**
- Focus on batch entries; don't fire all ammunition at once
- **5.2.** Follow the trend for entries; when the main trend is bearish, prioritize shorts, and vice versa

## II. Hot Altcoin Trading

**1. Chase hot coins when market sentiment is strong**

**2. Control win/loss ratio at approximately 3:1**

**3. Daily stop loss drawdown = 15%-20% of capital; stop trading for the day once reached**

**4. Review your trades daily**

## III. Crash Market Conditions

- Keep cash reserves and batch buy the dip
- If no opportunity arises, stay in cash
- In this scenario, not losing money equals making money

## IV. Break-Even Stop Loss

**1.** When today's trades haven't hit stop loss and the same-timeframe K-line pattern hasn't broken, you may not need a break-even stop loss

## V. Golden Rules

**1. Never dream of going all-in for quick riches**

**2. Only trade setups that suit your style; learn to sit in cash and avoid forcing trades**

**3. Don't trade overnight positions**

**4. Minimize trading on weekends**

**5. After hitting a stop loss, control your emotions and avoid revenge trading**