**The biggest fear for contract beginners is a liquidation explosion, but honestly, it's still about poor position management.**

Many fans have asked me the same question: I only have around 1200 dollars, how do I trade contracts without losing everything? Over the years, I've mentored some newbies, and I found that everyone tends to fall into similar traps—mainly using too high leverage, full position trading, and adding money after losses.

Let me share my summarized approach.

**First Round: 5-Part Position Sizing Method**

If you have more than 1000U, never invest it all at once. My advice is to split it into 5 parts, only use 200U each time, and choose 10x leverage. Why not higher? Because beginners see a 2% market fluctuation and panic, leading to even more chaotic trading and faster losses. I've seen people go straight to 50x leverage, and a small spike can wipe them out.

What about the remaining 800U? Put it into financial products and don't touch it. This is your insurance.

If you lose the 200U in the first round, don't add more! I used to do that—after losing, I’d feel frustrated and add more money, only to get deeper into trouble. Later, I realized: when you lose, stop and think about why. Wait 1-2 days before continuing. Markets fluctuate daily, and there are opportunities every month. The most important thing is to stay alive.

**Second Round: Try Again, Be More Cautious**

After adjusting your mindset, split the remaining 800U into 5 parts of 160U each and restart. This time, the goal is to earn steadily. Once you make 500U, don’t be greedy—quickly transfer 300U to your spot account or wallet, leaving only 200U for trading. Holding the money you’ve already earned helps keep your mindset stable.

I’ve seen too many people earn 500 or even 1000U, but then they’re reluctant to withdraw, and a market spike wipes everything out, forcing them to start over. That feeling is really terrible.

**Leverage and Market Fluctuations Reality**

Honestly, with 10x leverage, if you’re wrong on the direction, a 10% drop can liquidate you. Mainstream coins like BTC fluctuate 20% a year quite often. Even if you’ve earned a lot before, full position trading will eventually wipe you out.

Some veteran traders I know, with over ten years of experience, only achieve a 60% win rate, which is already impressive. So instead of obsessing over win rate, focus on good position management—even with a 90% win rate, one mistake can ruin everything.

**Specific Trading Discipline**

- If daily losses exceed 2% of total funds, be alert; if losses reach 6%, close all losing contracts immediately.
- For profitable trades, set a breakeven stop-loss and take a break for 2-3 days before reviewing.
- Don’t chase the market. If adding positions, do it immediately or wait for a big correction and add gradually using a "pyramid" approach.
- When margin profits exceed 200%, set half to take profit at 40% retracement, and the other half to breakeven. Never let big gains turn into big losses.

**Quick Start for Beginners**

- Starting capital: 300-500U
- Leverage: 5-10x
- Set stop-loss immediately—close out if loss hits 100-200 dollars
- Use a "30% profit retracement" strategy for take profit
- Withdraw profits once earned—don’t let floating gains turn into losses
- If you want to add more funds, 1000U is enough; first master the skills before increasing capital

Final words: Profits from contracts should really be withdrawn and stored. This helps accumulate principal and boosts confidence. Earning steadily each month and saving for a year can lead to a substantial income.