If you have 30,000 USDT ready to invest in contract trading, consider dividing it into three parts, with each part being 10,000 USDT. When opening a position, consistently use one part, that is, 10,000 USDT, and do not exceed 10x leverage for Bitcoin and 5x for altcoins. If you encounter a loss, for example losing 1,000 USDT, consider replenishing the same amount externally. Conversely, if you gain 1,000 USDT, you can withdraw it. Ensure that for a period of time, each time you open a position, you maintain this fixed 10,000 USDT position. Until you increase the 30,000 USDT to 60,000 USDT this way, then raise each position to 20,000 USDT.

This approach has many benefits:

First, by diversifying positions and using low leverage, you can effectively avoid total losses caused by extreme situations such as exchange spikes, building a solid defense for your funds.

Secondly, it can effectively prevent significant losses caused by impulsive trading. Even if you lose your mind at a certain moment, you will at most lose one-third of your funds, and the remaining funds can still provide you with a buffer and a chance to make a comeback.

Moreover, maintaining a fixed position helps you keep a calm mindset. Whether you are facing losses or gains, you can approach market fluctuations with a more composed attitude, thus making wiser decisions.

When opening a position, I tend to fully invest at once. For example, using 10,000 USDT, when I am optimistic about a certain cryptocurrency, I decisively enter fully. Of course, this is based on my precise grasp of the entry point. If your funds are tight, or if you are currently facing significant losses or even debts, please proceed with caution. You can start with 1,000 or 2,000 yuan, equally dividing it into three parts, and operate slowly. Do not disdain the small amount, as in this market, the amount of funds is not the only factor determining victory or defeat.

As for how to reduce losses, I have three suggestions for your reference:

First, stay away from high leverage. Leverage exceeding 5x for altcoins and 10x for Bitcoin is a high-risk choice, and it can often lead you into an irretrievable situation.

Second, avoid trading against the trend. When the market is clearly on the rise, do not attempt to short. While there are indeed shorting opportunities, you must be clear about your risk tolerance. It is better to miss an entire round of market movements than to take risks trying to catch the top or bottom against the trend.

Third, trading must be logical. Do not blindly place orders based solely on charts; instead, make decisions by considering various factors such as market dynamics and fundamental analysis.

Follow me and comment, in the next issue I will explain the risk control methods of institutional traders, stay tuned!