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Honestly, as a beginner just starting with contract trading, my account is only a few hundred to a thousand dollars. Whenever I open a position, I worry about liquidation—truth be told, your concern is justified.
Here's the problem: many people have 1000 bucks but trade with the mindset of 10,000. Over the years, I've seen many small accounts survive, and none of them did so by reckless trading.
**The first step? It's not choosing coins or studying indicators. It's one thing: don't go all-in on one shot.**
My approach is simple—divide 1000 into 5 parts, and only risk 200 each time. Keep leverage between 5x and 10x, roughly. Those who open 50x or 100x leverage? To be blunt, that's no longer trading; it's pure gambling—hoping the market will spike and take you out.
The remaining money stays untouched.
What if one part loses? Don't add to the position, don't get emotional. I used to do that—lose and try to recover immediately, adding more and more, only to sink deeper. Later, I realized sometimes stopping is more important than continuing. The market is always there; you don't lose more than a day or two.
**Calm down, review where you went wrong, and once your mindset is adjusted, restart with a smaller amount.**
Another point I always emphasize: take profits immediately. For example, if you make 500 bucks, transfer 300 to a cold wallet, and only keep 200 to continue trading. Only realized gains can truly save you from a distorted mindset. I've seen too many people hold onto a few hundred dollars of unrealized profit, unwilling to take it, and then a correction wipes out their account.
One last harsh reality:
With 10x leverage, just a 10% wrong move, and your account is gone. Is a 10% daily fluctuation in Bitcoin difficult? Not at all. Even seasoned traders, a win rate of 60% already makes them experts.
Think carefully about these points before deciding whether to continue.