The Importance of Capital Management and Position Management🚦

Many people have no concept of position management when trading contracts, determining how much position to take based solely on feelings. As a result, they unknowingly take on too much position, ultimately leading to liquidation.

For example, if you have $1000, you can divide it into 10 parts, using only $100 for each trade. Timely withdraw the profit, and transfer the loss from backup funds to cover it, always maintaining $100 for each transaction. By operating in this way, you can effectively diversify risks and avoid systemic losses due to a single trade mistake.

The contract market carries significant risks, but as long as you protect your principal, you will always have the opportunity to turn things around. Therefore, protecting your principal is the core principle of trading, avoiding being wiped out by the market due to impulse or negligence.

Remember: Stable capital management and position control are the keys to long-term survival👈$BTC $ETH