Many people trade contracts and choose to use their entire account from the start, for a simple reason: to resist volatility and avoid liquidation.
But the problem is, using your entire account is not a shield for recklessly using your position.
If you truly open a position using your entire account with ten times leverage, and the market goes against you, it's not just a small loss; your entire account could go to zero.
I have seen many people who think their entire account is safe, and as soon as they have 5000U in their account, they dare to bet 4800U all at once on short-term trades.
As a result, with just a slight market shake, their entire account gets liquidated, with no time to react.
You must understand that using your entire account is meant to give you some breathing room, not a reason to risk everything for volatility.
With the same ten times leverage, some people cut their losses and retreat after a small loss, while others stubbornly hold onto their accounts until they are completely wiped out.
Why? The difference lies in position allocation.
Here's a simple example:
If you have 1000U in your account and only use 100U at 50 times leverage, even if you're wrong, you can stop loss in time. The remaining funds can still keep you afloat.
But if you directly throw in 900U, even if you only use ten times leverage, a market shake could bury your entire account.
So stop asking how much leverage is safe; you should be thinking about how much of your account you are using for this trade. Do you have a stop loss? Can you withstand the wrong direction?
Now, when I trade contracts, I still use my entire account, but I have a few strict rules:
- No single trade exceeds 20% of the total account.
- Set a stop loss, keeping losses within 3% of the principal.
- Don't mess around in volatile markets, and don't increase your position out of impulsive emotions.
If you want to survive in contract trading, it's not about avoiding risks; it's about managing risks.
Using your entire account isn't about going all in at once; it's about responding to volatility with more flexibility.
What you lack is not effort, nor opportunity, but a person who can help you achieve stable profits in this market.
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