I've seen too many people turn small contract positions into six figures, only to lose everything in one final trade. But there's no denying that compounding positions is the most aggressive wealth amplifier in the crypto market—either you skyrocket or get wiped out in an instant. The rush is far beyond simply holding coins.

The core logic of this strategy is very simple: high leverage + profit reinvestment + sticking to a single direction. For example, start with $300 as your principal, and each time only open a $10 position with 100x leverage. As long as you make 1% profit, you can double your money. After making a profit, withdraw half to secure your capital, and keep rolling the rest. In theory, if you make the right call 11 times in a row, $10 can become $10,000. Sounds great, right?

In reality, 99% of people can't even stick to basic discipline.

The most common ways to blow up: refusing to accept losses and doubling down to try to recover; being indecisive and getting whipsawed between long and short; getting cocky after a small win and going all-in, only to get liquidated.

The real iron rules for survival are actually very simple—cut your losses immediately when you're wrong, and if you get it wrong 20 times in a row, force yourself to stop and cool off. If you make $5,000, you must withdraw part of it—don’t let the numbers on the screen cloud your judgment.

Last year, there was a one-sided market move and I compounded $500 into nearly $500,000 in three days. But what most people don’t know is that I waited four whole months without making a single move before that. Compounding positions is never about trading every day—it's about waiting for the big opportunity and going all in when it comes.

Can you still compound positions in this market? Ask yourself three questions first: Is volatility high enough? Is the trend clear enough? Can you stick to just capturing the mid-section of the move and not chase the very end? If you can do all that, then there's an opportunity.

In essence, contract trading is about using discipline to fight human nature and using patience to let probability play out.