A Must-Read for Newbies in Contract Trading, Don’t Wait Until Liquidation to Regret!
Recently, many newcomers have asked me:
"I just entered the market, have no experience, and I have 1000U, how can I start safely?"
If you get this step right, you can survive longer in the crypto world and steadily grow your capital.
I have organized an anti-liquidation operation model suitable for beginners; just follow it, even if you don’t understand the technology, you can avoid pitfalls:
Assuming you only have 1000U, how to allocate?
Step 1: Split Your Capital
Divide your capital into 10 parts, using only 100U for each position.
Don’t be greedy with contract leverage; a maximum of 20X is enough. Newbies cannot handle the volatility of high leverage; one liquidation can break your mindset.
Step 2: Reserve Funds to Prevent Impulse Trading
Put the remaining 900U into a wealth management account or keep it idle.
Why? Many people rush to recover after losing the first trade, leading to a total loss.
If the first trade loses, take a forced break for 1-2 days, calm down before starting the next round.
Step 3: Second Round Allocation
Split the remaining funds into 10 parts again, each operation smaller and steadier.
Set strict stop-losses, with the goal of gradually recovering losses.
Withdraw part of the profits in a timely manner, leaving only a small amount for continued trading.
The purpose of withdrawing funds is to control your mindset, preventing you from being overwhelmed by unrealized gains.
Key Principles
Trading contracts is not about going all in but about position management.
Even with a high win rate, if a single heavy position goes wrong, all previous gains can be wiped out.
Market volatility is unpredictable, and black swans can appear at any time.
For example, a 10%-20% fluctuation in BTC within a year is quite normal.
If you open a 10X leverage position and the direction is wrong by 10%, your account could go to zero.
Practical Experience
The win rate of excellent traders is often only 60%; you don’t need to be right on every trade.
What you need to do is: lose less, keep more, and survive longer.
I have guided many beginners, steadily rolling back from 1000U to the principal, even successfully flipping.
Open trades daily in a rhythm, avoid fantasies, and make every step executable.
Newbie, remember: Steady Allocation + Strict Positioning = Long-Term Profit.
Don’t wait until you lose everything to regret; control risk to have a chance of turning things around.
What you lack is not effort; this market is not short of opportunities. What you truly lack is someone who can help you achieve stable profits in this market.
