Contract Trading Lifesaving Secrets:

Newbies often wake up in shock, realizing their positions are empty, and automatic liquidation becomes a nightmare! In the contract market, changes happen in an instant; improper stop-loss settings can lead even the most experienced traders to disaster. Seasoned traders share their lifesaving insights to help you navigate steadily!

Secret One: Stop Loss Must Be Quick, Life Must Be Protected

At the moment of opening a position, a stop loss must be set! Regardless of low or high leverage, once your psychological bottom line is breached, immediately stop loss; do not hold on, do not cling to battles. Learn to stop loss to survive long-term; a single hold can lead to zero balance, causing deep pain—do not let tragedies repeat!

Secret Two: Position Size Must Be Precise, Do Not Be Greedy

Full position operations should ideally involve one or two contracts; opening too many can disrupt the strong liquidation price. If one coin crashes, the entire portfolio suffers. We must be steady; general positions should be kept small, very rarely opening too many. Greed cannot be digested; steadiness is the way to go. Multiple positions should be done gradually, but gradual operations are difficult to execute; choices must be made carefully.

Secret Three: Stop Loss Before Liquidation, Avoid Going to Zero

Before the liquidation price, stop loss must come first! For example, if the liquidation price is 2731, set a stop loss at 2730.5 to protect your account balance with a remaining amount of thirty or forty. Not setting a stop loss can lead to a zero balance, and regrets will come too late. Binance’s slippage is controllable; mainstream coins are not in extreme situations, so stop losses rarely lead to liquidation.

Secret Four: Funds Must Be Diversified, Avoid Extreme Risks

In a contract account, do not put in too much capital! For example, with a hundred oil position and a capital of three hundred, with a stop loss of a hundred oil, even if liquidation occurs, only three hundred is lost. However, for a thousand oil account with a hundred oil position and a stop loss of a hundred oil, the loss may be five hundred or even lead to zero. Diversifying funds reduces risk; steady investment is the way to ultimately succeed!

In the contract market, risks and opportunities coexist. With the lifesaving secrets in hand, you can move forward steadily. Do not let liquidation become a nightmare; learn to stop loss, control positions precisely, and diversify funds to stand tall in the market and become a perennial tree in the contract trading world!