Some Contract Beginner Tips
1. Capital Management:
· The starting capital is strictly limited to 100 USDT.
· Always adhere to the principle of "investing only 100U each time"; promptly withdraw profits and never add to the principal.
2. Underlying Asset and Leverage:
· Preferred asset: (ETH/USDT). Good liquidity, relatively stable volatility, suitable for beginners to practice.
· Leverage setting: Maximum leverage of 100 times.
· Position size: With 100 times leverage, open only 1 position to ensure a clear upper limit on losses per trade.
3. Risk Control (Core):
· Stop-loss: Firmly execute a -20% stop-loss, leaving the market unconditionally.
· Take-profit: Set a +100% profit target; once reached, do not be greedy and close the position immediately.
· "Win three times in a row, double the principal": This is your interim goal. With 100U principal, successfully complete the process of "opening a position → hitting 100% take-profit" three times to roll the principal to 200U. After that, continue with 100U as the unit for subsequent operations.
4. Core Mindset and Discipline:
· Always leave a way out: This 100U is your entire "tuition fee"; losing it does not affect your life.
· Split positions to test: If you incur a loss once, stick to the original rules when opening positions next time to avoid the temptation of over-leveraging due to emotional pressure.
· Practice discipline first, then talk about making money: The only goal at this stage is to develop a feel and execution ability, turning "strict stop-loss and refusal to be greedy" into muscle memory.
--- Supplement and Reminder ---
The essence of this strategy lies in its discipline, locking in risks at 20U while aiming for a potential profit of 100U, with a risk-reward ratio (1:5) that is theoretically excellent. However, please pay attention to the following points:
· The double-edged sword of high leverage: 100 times leverage will dramatically amplify volatility; even with a 20% stop-loss set, slippage may occur in extreme market conditions, resulting in the actual execution price being worse than the preset stop-loss price.
· Sustainability of the strategy: This strategy relies on a high win rate or a few big wins to cover small losses. In practice, the psychological pressure and capital consumption from consecutive stop-losses need to be closely monitored.
· Recommendation: Practice repeatedly in a simulation account until you can execute stop-loss and take-profit without hesitation before investing real money.
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