#数字货币市场洞察 has been trading contracts for eight years, and I discovered a truth: people who get liquidated aren’t unlucky—they just never took risk management seriously.

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A lot of people hear “contract trading” and immediately think it’s gambling. But if you understand a few core principles, you’ll realize contract trading isn’t what you imagine at all.

**Let’s bust the biggest myth first**

High leverage = high risk? Wrong.

Suppose you use 100x leverage but only use 1% of your account funds to open a position. In this case, your actual risk is the same as using all your funds to buy spot with 1% risk. Remember this formula: real risk = leverage x position size percentage. Leverage is just a tool; position size is the real deciding factor between life and death.

**The painful lesson of 2024**

During last year’s market crash, statistics showed that 78% of liquidated traders had one thing in common—they kept holding on after a 5% loss. Why? Because they couldn’t bear to cut their losses, hoping for a rebound.

Experienced traders have a golden rule: loss per trade must never exceed 2% of your total funds. This isn’t a suggestion—it’s a survival rule.

**How do you calculate your ideal position size?**

Here’s a simple formula: maximum position size = (total funds x 2%) ÷ (stop loss percentage x leverage)

For example, you have 50,000 in your account, your maximum acceptable loss per trade is 2% (that’s 1,000), you plan to use 10x leverage, and set your stop loss at 5%. So your maximum position size would be: 50,000 x 0.02 ÷ (0.05 x 10) = 2,000.

If you exceed this amount, your risk is out of control.

**Don’t close your entire position at once when taking profit**

Scaling out in batches is the smart way:
- When profits hit 20%, close 1/3 of your position to lock in some gains
- When it rises to 50%, close another 1/3
- For the remaining position, close everything if the price falls below the 5-day moving average

Last year, a trader used this method and turned 50,000 into 1,000,000. That wasn’t luck—it was discipline.

**Buy “insurance” for your position**

When you’re holding a position, use 1% of your capital to buy a put option. It’s like buying insurance for your house—it might seem like a waste, but it can save you when disaster strikes.

During the sudden plunge in 2024, many people preserved 23% of their capital with this move. 1% cost for 80% risk hedging—it’s always worth it.

**Whether you can make money can actually be calculated**

There’s an expected value formula:
(win rate x average profit)-(loss rate x average loss)

Suppose your maximum loss per trade is 2%, and your profit target is 20%. Even if your win rate is only 34%, you’ll still be profitable over the long term. The key is to have a high risk-reward ratio—make more when you win, lose less when you lose.

**Finally, remember these four golden rules**

1. Loss per trade should not exceed 2% of your capital
2. Keep your number of trades under 20 per year
3. Maintain a risk-reward ratio of at least 1:3 (your profit must be three times your loss)
4. Spend 70% of your time waiting for truly good opportunities

Contract trading relies on rules, not gut feeling. Emotional trading will only make your account shrink. Strictly following your strategy is the only way to survive and earn steadily.