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Many newbies in contracts have asked me the same question - how to operate with 1000 to withstand risks? How much leverage is appropriate? In fact, this reflects the same underlying issue: not knowing how to leave a way out for oneself.
I have seen too many people who, right from the start, put all their capital at risk, and as a result, they get liquidated in a sudden market reversal. Instead of discussing how to make quick money, it is better to first understand the concept of "not losing".
**Step 1: Split the principal**
Don't use all 1000U at once. Divide it into 10 portions, and only use 100U for each operation, leaving 900U to calmly sit in the wealth management account. It may seem conservative, but it gives you the chance to make mistakes—you can lose that 100U and still have 9 chances to start over. This is the core secret for newbies to survive.
**Step 2: Leverage should be used with moderation**
Don't be tempted by the allure of high leverage. A leverage of 20x or less is a relatively safe choice, allowing you to enjoy the profits from volatility without easily losing your composure. Remember, you are entering the market to make money, not to gamble in a casino. Once your mindset is shattered, everything will be in vain.
**Step 3: Be ruthless with stop-losses**
Once you lose 100U, decisively exit and immediately stop to review. Some people's bad habit is to keep averaging down, increasing their positions, and stubbornly holding on, which ultimately leads them deeper into trouble. Instead of doing that, it's better to give yourself a 1-2 day cooling-off period to see how the market moves, and clarify your thoughts before taking action.
**Step 4: What to Do After Earning**
The status has been adjusted, and I will withdraw another portion from the 900U to continue testing. If I make 300U in this round, I will transfer 200U back to the wealth management account to lock in the profits, leaving 100U for the next round of operations. This way, both profits are protected and the capital for continuous trading is maintained.
This logic sounds very basic, but for newbies who can actually follow this rhythm, their survival rate can increase by several orders of magnitude.