After ten years of honing a sword, this contract survival guide condenses the blood and tears of countless traders. Stop blaming liquidations on the market; the real trigger is often lit by your own hands. True trading experts have long since strangled risks in their infancy -

1. Leverage is not scary; an uncontrolled position is what is deadly.

100x leverage with 1% position, the risk is even lower than being fully invested in spot.

Evidence: A certain trader used 20x leverage, only invested 2% of the principal at a time, and never faced liquidation for three consecutive years.

Key formula: Actual risk = leverage × position (for example, a 5% position with 10x leverage is equivalent to 50% risk in spot).

2. Stop loss is a safety valve, not a knife for cutting losses.

Data from 2024 shows: 78% of liquidated accounts chose to stubbornly hold on when losses exceeded 5%.

Iron rule of professional traders: Single loss must not exceed 2% of the principal (just like a race car driver must wear a seatbelt).

Practical tip: Trailing stop loss method - for every 10% increase in profit, move the stop loss line up by 5%.

3. The wisdom of rolling positions: Let profits 'add bricks' to positions.

First use 10% of the position to test the waters, and after making a profit, only increase the position by 10% of the profit.

Example: 50,000 principal, initial position 5,000 yuan (10x leverage), during the process of BTC rising from 70,000 to 80,000, the total position only expanded by 10%, but the safety cushion thickened by 30%.

4. Institutional-level risk control plans

Dynamic position calculation: Maximum position = (Principal × 2%) ÷ (Stop loss range × Leverage).

Three-stage profit-taking strategy: Close 1/3 of the position when profit reaches 20%, close another 1/3 when profit reaches 50%, and liquidate all remaining positions if they fall below the 5-day moving average.

Hedging insurance: Use 1% of the principal to purchase Put options while holding positions; during the black swan event in April 2024, successfully recovered 23% of net worth.

5. Those shocking data truths

Holding a position for more than 4 hours, the probability of liquidation is as high as 92%;

Trading more than 50 times a month, transaction fees will consume 24% of the principal;

Making a profit but not taking profits, 83% of accounts will give back all their gains.

Ultimate survival rule:

Single loss ≤ 2%;

Number of trades per year ≤ 20;

Profit and loss ratio ≥ 3:1;

Maintain an empty position and observe 70% of the time.

The market is essentially a probability game; smart people will bet on trends with a 2% risk. Remember: understanding how to brake allows you to drive faster on the trading track. Establish a mechanical trading system, making discipline instinctive; this is the ultimate key to achieving sustained profits.#币圈