The sea is vast and the sky is high!
If you don't want a day trip, read this article carefully, turning 3000 into 1 million, listen to me talk about something practical! See how I did it in one month.
Doing contract rollover compound interest +: from over 1100U, equivalent to 8000 RMB, earning a million!
The core is just one sentence: rely on contract trading to amplify profits!
Many people start trading contracts with only 10,000 capital (about 1400U), thinking 'small capital, just do it'. But the truth is: the smaller the capital, the more you need position management.
Large capital can rely on time, while small capital relies entirely on discipline. Otherwise, a single liquidation requires recharging 'faith'.
The following method is suitable for contract players with capital between 5000 to 20000 RMB, the goal is not to double in a day, but to have low drawdown and steady growth.
1. Core goal: not to get rich overnight, but to achieve steady compound growth.
Small capital contracts are not for earning a luxury car each time, but for earning a phone case every month. After 12 times, it becomes an iPhone.
Compound interest rhythm:
Monthly target return: 10% to 20%.
Control the maximum single loss to not exceed 2% of the total account capital.
Swing trading allows holding for 1 to 5 days, with adjustments to stop losses in between.
2. Four-step method for small capital position management.
Step one: Segment the account and define the 'combat capital pool'.
Account: 10000 RMB ≈ 1400U.
Divide into 4 trading segments, each segment 350U.
Only use one segment for trading, leave the other segments untouched.
Essentially giving yourself 4 lives; if you make a mistake, there is a chance for redemption.
Benefits: resistant to consecutive stop losses, you won't lose all your ammo at once.
Step two: Control each risk to be within 1%-2% of the total capital.
Recommended practice: control the single trade stop loss amount within 140U (about 10%).
For example, doing BTC:
The difference between the entry point and the stop loss point = 500USDT.
Using 10 times leverage means a fluctuation of 50USDT.
To not exceed 140U risk, you can open a maximum of 2.8 BTC contracts ≈ 3 contracts.
→ This is the process of reverse calculating position size.
Remember one thing: it's not about how many contracts you want to open, but how many the market allows you to open.
Step three: Pyramid scaling, only increase position size when making a profit.
If you long from a low position and have a floating profit of 100U, you can consider:
Add part of the position and continue to capture the trend upwards.
Raise the stop loss to breakeven or even the profit zone.
The remaining portion can attack freely, risk control has already protected yourself.
This way, even if the market pulls back, you can withdraw without injury.
Add positions only when there are floating profits, do not add when there are losses!
Step four: Market segmentation, determine position strength.
3. Additional points to note in cryptocurrency contract trading.
1. Leverage suggestion: no more than 20 times (what I mean here is the total leverage ratio of the account)
Leverage does not amplify profits but amplifies mistakes.
High leverage is suitable for ultra-short-term experts, not for swing trading.
2. Transaction fees have a significant impact.
It is recommended to choose large platforms and rebate links, and don't frequently trade on high commission platforms.
Transaction fees will eat away most of your small capital's compound profits.
3. When volatility is extremely high, reduce position size or even observe.
Reduce position size during major news or extreme volatility.
Small accounts have poor pressure tolerance, most afraid of large downswings and upswings sweeping back and forth.
4. A practical example: using 350U to penetrate a wave of the market.
Choose coins: DOT breaks through the box structure and stands on the key platform/UNI breaks through the trend line/WOO's bottom keeps rising, forming an upward structure in the box/BTC does not break below 107200 for a long time, and forms a new independent structure, meeting the entry criteria in the trading system.
Entry: Confirm entry on the right side after the platform breakout and pullback, enter on the left side of the box breakout, and enter on the left side of the important trend line.
Stop loss: set the stop loss at the lower edge of the platform, risk control within 100U.
Scaling: add half position when the price breaks through structural positions or shows trend candlesticks, and move the stop loss to the breakeven point during the pullback.
Reducing position: when the price experiences a rapid increase or approaches previous highs/resistance levels, take partial profits.
After a wave, the account grew nearly 500%. This is the path that small capital contracts should take - no greed, no fear, no reckless rush.
5. Small positions are your secret skills, not shackles.
Small capital is not the problem; misusing position size is the problem. You do not lose on skills but die in liquidation. Stable position, stable emotions, stable operations.
Remember this sentence: 'Being able to win a trade is skill; being able to lose a trade is the system.'
What small capital fears most is not slowness, but death. First learn to survive, then slowly become stronger.
Azhe only does real trading, the team still has spots for $BTC $ETH, hurry up to get on.
