Contract Position Management Guide

When we trade contracts, if we plan to take out 30,000 USDT to play, it is best to divide this 30,000 USDT into 3 parts, with each part being 10,000 USDT. Each time we open a position, we use one of the 10,000 USDT to operate. When trading Bitcoin (BTC), do not exceed 10x leverage; when trading other altcoins, do not exceed 5x leverage.

If this 10,000 USDT incurs a loss of 1,000 USDT, then make up for the 1,000 USDT from elsewhere to ensure that the next position is still 10,000 USDT; if you make a profit of 1,000 USDT, withdraw this 1,000 USDT. Continue operating like this, and when the 30,000 USDT turns into 60,000 USDT, then increase each position to 20,000 USDT.

What are the benefits of doing this?

First, splitting positions and using low leverage can prevent exchanges from manipulating the market and losing all your money at once.

Second, it can prevent you from getting overly emotional. Even if you act impulsively, you will at most lose one-third of your position, allowing you to keep playing with the remaining funds.

Third, having fixed positions can help stabilize your mindset, whether you make a profit or incur a loss, you won’t panic too much. My own habit is to use all 10,000 USDT at once, trading one coin in a single market wave, which means fully using one-third of the funds from a position, with 5x leverage on altcoins and 10x leverage on Bitcoin.

Of course, this is because I have a good grasp of the entry points for opening positions. If everyone trades, remember to set stop losses and use low leverage to avoid liquidation. If you're tight on funds, or if you have already lost a lot or are even in debt, don’t deposit too much money at once; just deposit 1,000 - 2,000 USDT and split it into 3 parts to do it slowly.

Tips to Reduce Losses: First, never use high leverage; for altcoins, don’t exceed 5x leverage, and for Bitcoin, don’t exceed 10x leverage, as that carries significant risk. Secondly, don’t go against the trend. When the market is rising, don’t think about shorting. It’s better to miss out on profit opportunities than to guess the top or try to bottom out against the trend.

Finally, when trading, you need to have your own logic; don’t just place orders based on charts. If you feel uneasy after opening a position, it indicates that the trade was not right. Every time you make a profit, you should set aside some funds; you never know, that money might be what helps you turn things around in the end.