Contract Operations

Recently, many fans have mentioned that they are new to trading and don't know how to operate. They have entered with funds of 1000U or less and ask me for good strategies, so today I will share my advice. For example, if you have 1000U, divide it into 10 parts, investing 100U each time, with a suggested leverage of 20X. Newcomers find it hard to manage their mindset with too high of a multiplier. The remaining 900U should be kept in a wealth management account. If you lose 100U, you must not think about averaging down. If you lose everything, the first thing you need to do is reflect and summarize, then take a break for 1-2 days. Don't be afraid of missing out on market movements; Bitcoin's volatility occurs at any time. There are big fluctuations every month, and opportunities depend on whether you are lucky enough to play. Once you have adjusted, you can divide the remaining 900U by 10, making each part 90U, and invest it again, but this time be more cautious, aiming to earn that money back. Suppose you make 300U this time, you leave 100U behind and transfer out the remaining 200U; this way, you will feel more secure and your mindset will be much better. Never invest everything at once; if a black swan event occurs, you'll lose it all in one go and have to start over. Objectively speaking, if you are trading contracts, you should use 10X leverage. If your direction is wrong and it drops by 10%, you will get liquidated, and with Bitcoin, a 20% fluctuation in a year is very normal. If you always go all in, it doesn't matter how much you earned before; ultimately, it all returns to zero. Walking along the river, no one can guarantee they will be right every time. A skilled trader with a 60% success rate is already impressive. Thus, position management is very important. Even with a 90% win rate, one wrong move could lead to disastrous consequences.

Learn trading knowledge, implement light position operations, and reduce losses. Most people lose money in trading because they do not understand the market and do not know how to control their positions and manage risks. Therefore, avoid increasing positions when feeling unwell; instead, reduce or close your positions. If you lose more than 2% of total capital in one day, you should be alert. If losses reach 6%, clear all losing contracts and set a breakeven price for profitable contracts to take profits, then rest for at least 2-3 days. Chasing prices is dangerous; unless market conditions are clear, do not blindly chase prices. Be cautious when increasing positions after a profit, especially after significant gains, as new positions often lead to failures.