Newbies who have just stepped into contract trading often harbor dreams of "getting rich overnight," but often return defeated after the brutal baptism of the market. Today, I want to share a practical survival strategy for those who have around 1000U in funds.
Position Management: Protect Your Lifeline
Divide the 1000U principal into 10 equal parts, investing only 100U each time, which is a rule that beginners must follow. It is recommended to keep the leverage ratio within 20 times; excessive leverage will amplify your emotional fluctuations. The remaining 900U must be kept in a wealth management account, which is not only your reserve fund but also your psychological defense line.
The Correct Posture After Losses
When the 100U is nearly exhausted, the most important thing is to stop trading immediately. Give yourself a 1-2 day cooling-off period, stay away from the market, and reflect. The market will always be there; missing one opportunity is far better than repeating mistakes. After adjusting your mindset, reallocate the remaining funds, adjusting each investment to 90U. Remember: the first goal after a loss is not to recover the capital, but to rebuild trading confidence.
Key Operations When Profiting
Assuming this time you successfully made a profit of 300U, please immediately withdraw 200U of profit, leaving only 100U to continue trading. This action seems simple, but it can effectively improve your trading mindset. The market always has black swan risks; keeping some profits ensures that you won’t return to square one overnight.
Mathematical Principles of Risk Control
Taking 10x leverage as an example, a 10% wrong directional judgment can lead to liquidation. And a Bitcoin annual volatility of over 20% is the norm. This means that the success rate of fully invested operations must be close to 100% for survival, which is clearly impossible. Even for top traders, a 60% win rate is already quite rare. The essence of position management is to combat market uncertainty through capital allocation.
Trading Maxim: The market rewards the brave, but ultimately only sustains the cautious. Protecting your capital is more important than seizing opportunities. Control your losses, and profits will take care of themselves.
Remember, surviving longer in this market is more important than making quick profits. When you can strictly implement this method, you have already surpassed 90% of contract traders. Want to know how to identify the best entry timing? Follow me.