Beginners playing contracts, a must-see for novices
Recently, many fans mentioned that they are just starting and don’t know how to operate. The initial capital is within 1000u, and they ask me for good strategies. Today, I will share my advice. For example, if you have 1000U, divide it into 10 parts, investing 100U each time, with a recommended leverage of 20X. Newcomers have difficulty controlling their mindset with too high leverage. The remaining 900u should be placed in a wealth management account. If you lose 100U, do not think about making up for it by adding more positions. If you lose everything, first, reflect and summarize, then take a break for 1-2 days. Do not fear missing opportunities; Bitcoin’s volatility is always present. There are significant fluctuations every month, and many opportunities depend on your ability to play. Once adjusted, divide the remaining 900U by 10 to make each part 90U, and reinvest. Be cautious this time and aim to recover the money; if you make 300U this time, leave 100U and transfer the remaining 200U out. This will give you peace of mind and improve your mindset significantly. Never invest everything; if a black swan event occurs, you will lose everything at once and have to start over. Objectively speaking, for contract trading, always open at 10X. If your direction is wrong and it drops by 10%, you will be liquidated. Even for BTC, a 20% fluctuation in a year is very normal; if you are fully invested each time, it renders all previous gains meaningless, ultimately leading to zero. Those who walk along the river regularly know that no one guarantees being right every time. A great trader with a 60% success rate is already impressive. Therefore, position management is crucial. Even with a 90% win rate, one wrong trade can lead to catastrophic losses.
Learn trading knowledge, implement light position operations, and reduce losses. Most people lose in trading because they do not understand the market well enough and do not know how to control positions and manage risks. Therefore, avoid increasing positions when feeling unwell; instead, reduce or close positions. If losses exceed 2% of total funds in a day, it’s time to be alert. When losses reach 6%, clear all losing contracts and set a breakeven stop-loss on profitable contracts, then rest for at least 2-3 days. Chasing after price increases is dangerous; do not blindly chase unless market conditions are clear. Be cautious when increasing positions after making a profit, especially after significant profits, as new positions often lead to failure. If you want to increase your position, act immediately or wait until a major pullback ends, and follow the pyramid position increase method. When margin profits exceed 200%, set a 40% trailing stop-loss on half and a breakeven stop-loss on the other half. This is to protect profits and ensure that significant profits do not turn into losses. Never trade when feeling bad, depressed, or troubled in life. If you have overall losses in the past 24 hours, you should also rest for 2-3 days. Never trade against the trend, reduce trading frequency, and look for suitable entry opportunities. For correct trades, maintain a base position as much as possible, since correct decisions may continue to yield profits.