Newbies afraid of liquidation when trading contracts? Here’s a strategy for small funds under 1000U, follow this to avoid pitfalls!
Recently, many new fans have asked: I’m just starting with contracts and have less than 1000U, how can I operate without losing? Today I’ll share my practical advice that beginners can use directly!
For example, if you have 1000U, don’t invest all at once! First, divide it into 10 parts, and only invest 100U each time, using 20x leverage—newbies often get their mentality broken with too high leverage. Keep the remaining 900U in a wealth management account, steady and don’t touch it. If you lose 100U, don’t think about averaging down! Stop and reflect on 'why did I lose', then take a break for 1-2 days. Don’t be afraid of missing out; Bitcoin fluctuates every day, and there are big opportunities every month. You must preserve your capital first to earn.
After adjusting well, divide the remaining 900U into 10 parts (each part 90U) and start over, this time more carefully, striving to earn it back. If you earn 300U, don't be greedy! Keep 100U to continue, transfer all the remaining 200U away — having cash in hand stabilizes your mindset, otherwise encountering a black swan could wipe you out in one go, and you'd have to start over.
Objectively speaking, playing with a 10x contract, if the direction is wrong and it drops 10%, you'll be liquidated; a 20% fluctuation in BTC within a year is very common, if you always go in full position, then all previous profits will be in vain, and in the end, it will all go to zero. No matter how good a trader is, a 60% win rate is already impressive, so position management is more important than anything else — even if you have a 90% win rate, one mistake might lead to irretrievable losses.
You also need to learn trading knowledge, operate with a small position to minimize losses: be alert if daily losses exceed 2% of total capital, if losses reach 6%, close the losing contracts, secure profits on winning positions, and take a break for 2-3 days; don’t blindly chase after the trend, be cautious when adding positions after profits, either add immediately or wait for a major correction and use the 'pyramid adding' method; if margin profits exceed 200%, set half to 40% drawdown for profit-taking, and the other half to break even — don’t let big profits turn into losses.
If you're in a bad mood or have lost within 24 hours, don’t trade; don’t go against the trend, take fewer trades and look for good opportunities, try to keep the right trades as a base position to earn sufficient profits. Newcomers remember: start with a small capital of 30-50U, 20x leverage is just right; set a stop loss as soon as you enter (get out if you lose 20-30 dollars), use the 'profit drawdown 30%' strategy for take profit; once you make profits, withdraw funds, each time depositing 500-1000 USD is enough, don’t invest too much, first practice your skills before considering adding positions.