Shanzhai Season is here. Are the coins you hold starting to mess with you again?

Bitcoin is fluctuating repeatedly at high levels, and altcoins are even more lethargic. Some people are getting impatient and start doubting their choices; more are quietly observing, waiting for that signal to appear. This stage is crucial—it’s both a screening period and a layout period.

The key question is: why do most people not only fail to make money during Shanzhai Season but also end up losing their principal?

Many traders’ logic is simple and crude—when the coin rises, they rush in, with the largest leverage at the most intense moments. Have you seen it? A certain altcoin suddenly surges 20%, 30% in a day, igniting emotions. With a flick of the finger, they open contracts with 10x, 20x leverage. And then? Reality is cruel. The liquidity of altcoins is inherently unstable, with frighteningly large fluctuations. The main strategy of big funds is to quickly push up the price and then perform a deep correction to shake out weak hands—this is called "killing the longs." Even if the trend doesn’t truly reverse, that small 5% retracement combined with high leverage can wipe out your account entirely.

This is why many people lose money—they treat contract trading as a game of chasing the wind.

**What is the real strategy? It’s not "chasing," but "lying in wait."**

Understanding the flow direction of big funds is the key. The market usually operates like this: Bitcoin hits a new high first, and during this time, market sentiment gradually improves. Investors start to believe "this rally might really be here," and then they dare to buy those highly volatile altcoins. The flow of funds follows a pattern—moving from large coins to small coins, from spot to contracts.

The fundamental reason many people keep losing money isn’t technical analysis but **a misalignment in timing and risk management awareness**. They can’t wait and always want to jump in at the most exciting moment. But the market loves to play the opposite—stacking large stop-loss orders at certain levels, so a single pin can burst them all.

What does contract strategy during Shanzhai Season emphasize? It emphasizes **patience and logic**.

First, you must accept a reality: at this stage, many altcoins are indeed oscillating at the bottom range. This isn’t a bad thing; in fact, it’s good—bottom oscillations mean that floating capital is being slowly cleaned out, and big players are secretly positioning. When market sentiment truly shifts and large coins establish an upward channel, these thoroughly shaken-out altcoins are likely to explode upward.

But there’s a trap: many people buy in during the first rapid price surge, which is exactly the most dangerous time. Because this rise is often caused by early insiders taking profits. The real opportunity lies in waiting for a complete shakeout, then entering when the price finds a new support level and stabilizes. That’s when the risk-to-reward ratio is most favorable.

The survival rule for contract trading is simple—staying alive is winning. Dreams of overnight riches often lead you into a trap. Those who strictly control individual losses, never chase high positions, and can tolerate consolidation are ultimately the winners.

Before Shanzhai Season arrives, prepare these points:

1. Stop chasing highs. Don’t buy when the increase exceeds 20%.
2. Choose reasonable entry points. Wait for the price to repeatedly confirm at key support levels, then try small positions.
3. Enforce strict stop-losses. Cut losses when they reach 2% of your account—don’t hope for a rebound.
4. Build positions gradually. Never go all-in at once; divide your funds into 5-10 parts and add gradually at different price levels.

This is the correct approach to survive and profit during Shanzhai Season. Emotions and greed are the biggest killers in contract trading. Overcome them, and you will beat most people.