If you just want to test contracts with 10,000, stop right there! Contracts are not a casino or an ATM; 90% of newcomers fail due to 'blind operation + heavy positions'! To avoid being harvested, you must memorize these 4 core steps.
Step 1: Put 10,000 in capital into a 'bulletproof vest', prioritize survival before making profits.
Position rules: no single position exceeds 5%, total position not exceeding 20%.
For 10,000 in capital, use a maximum of 500 for each trade! Total position should not exceed 2,000! I’ve seen too many people put in 5,000, and when the market slightly reverses, they get liquidated; remember: the heavier the position, the faster you die, light positions are a lifesaver for newcomers.
Funds splitting method: distribute into 5 portions, don’t put all your eggs in one basket.
Split 10,000 into 5 portions (each 2,000): invest 3-4 portions in major coins like BTC and ETH (stable, not easily manipulated), keep the remaining 1 portion as 'emergency funds' — when the market drops below the stop loss, do not panic buy, wait for clear signals before using it to bottom-fish or add positions.
Step 2: The 'foolproof strategy' that every newbie must learn, play without staring at the screen.
Dual moving average strategy: follow the moving averages, you won't go wrong.
Open the K-line chart, adjust the 5-day and 10-day moving averages.
The 5-day moving average crossing above the 10-day moving average (golden cross) + increased trading volume → decisively go long.
The 5-day moving average crossing below the 10-day moving average (death cross) + increased trading volume → timely go short.
No need to guess the trend; moving averages are 'road signs'; following them is 10 times more stable than guessing for newcomers.
Divergence bottom-fishing technique: catch reversal signals, don’t be the one left holding the bag.
Price hits a new low, but the MACD indicator is rising (bottom divergence)? This could be a prelude to a rebound! But don’t rush in; wait for 2 bullish candles to confirm the trend before entering with a small position — avoid being tricked by a 'false divergence'.
Step 3: Stop loss and take profit are lifelines! If this step is wrong, it’s all in vain.
How to set a stop loss? Keep an eye on support/resistance levels.
When going long: set the stop loss 3-5 points below key support levels (for example, if BTC's support level is 50,000, set the stop loss at 49,800).
When shorting: set the stop loss 3-5 points above key resistance levels.
Don’t set stop losses based on feelings, and don’t think 'if I hold on, it will rebound'; holding a position in contracts = waiting for liquidation.
Take profit in 2 steps, so profits don’t fly away.
Take profits at 20% first and close half! Lock in some profits, set the remaining position to a 'trailing stop loss' (for example, after making 30%, if it retraces 5%, it will automatically close), let profits grow like a snowball, don’t be greedy for 'selling at the highest point'.
Step 4: Avoid 3 'newbie minefields', which is more important than learning strategies.
Don’t go against the trend! If the market doesn’t look right, run immediately.
Clearly shorting but it rises, still thinking 'it will drop later'; going long but it falls, stubbornly holding without cutting — holding a position against the trend in contracts can make your 10,000 capital vanish in just an hour.
Don’t operate blindly without checking the news! The fundamentals can save your life.
The Federal Reserve's interest rate hikes, regulatory policies affecting certain coins, project failures... these news directly impact coin prices! For example, during the previous ETH merge, those who followed the news early had already positioned themselves, while those who acted blindly were all washed out.
Don’t let your mentality collapse! Don’t randomly add positions when you’re losing.
When losing 200, panicking and opening positions randomly, thinking 'I’ll make it back in one go'? The more anxious, the more mistakes! Newcomers should practice 'stability'; even if you only make 5% in a month, it’s better than losing 50%.
Lastly, let me say a big truth:
For 10,000 playing contracts, first learn 'not to lose money', then talk about 'making money'! Once you can stabilize risk and form your own trading habits, it’s not too late to consider increasing your capital. In the crypto world, staying alive is the most important thing!
