Total liquidation of contracts? Don't blame luck anymore! A 6-year veteran uses 5 "mathematical bulletproof vests" to calculate risks to the bone $PIPPIN

After 6 years of trading contracts, I've come to a heart-wrenching truth: liquidation is never due to bad luck; it's because you haven't even figured out "how to calculate risk." Today, I'll share 5 "low-risk hard tactics" to cure the habit of "liquidating as soon as you touch contracts" — after reading, you will understand: making money in trading is essentially a "mathematical game."

1️⃣ Leverage is not scary; what's scary is "out-of-control position"

Don't get weak at the knees just because you hear 100x leverage! The real risk = leverage multiplier × position ratio. For example, using 100x leverage but only trading 1% of your capital, the risk ≈ the volatility of 1% in spot trading — it's no different from "losing 1% on a fully leveraged spot position!"

The core: leverage is a tool; position is the switch. If you invest 10% of your capital + 10x leverage, the risk = 10×10=100%; if you invest 1% of your capital + 100x leverage, the risk = 1×100=100% — controlling your position is more important than getting tangled up in leverage.

2️⃣ Stop-loss is not a loss; it’s giving your account “health insurance”

In the big drop of 2024, 78% of those liquidated fell into the same pit: they held on without a stop-loss even after losing 5%! The old trader's rule: single trade loss ≤ 2% of capital — this is not conservative; it's using 2% as a premium to avoid 100% capital wipeout.

Remember: the stop-loss line is not "how much you might lose"; it's "how much you can lose at most." Set it well and don’t mess with it; it’s your account’s “fire hydrant.”

3️⃣ Position algorithm: lock in risk with a formula

Let me teach you a “foolproof formula”: maximum investable amount = (capital × 2%) ÷ (stop-loss percentage × leverage multiplier).

Example: with 50,000 capital, the maximum loss is 2% (1,000 yuan), using 10x leverage, stop-loss percentage set at 5% (price fluctuation of 5% triggers stop-loss) — maximum investment = (50,000 × 2%) ÷ (5% × 10) = 1,000 ÷ 0.5 = 2,000 yuan.

Don't place orders on a whim; use a calculator before you act — math is 100 times more reliable than your “feelings.”

4️⃣ Take profit in 3 steps; greed is a catalyst for liquidation

Sell 1/3 after a 20% gain, sell another 1/3 after a 50% gain, clear out the rest if it falls below the 5-day line — in 2024, someone used this tactic to grow 50,000 capital into 1 million.

5️⃣ Spend 1% of your capital on “insurance” to fend off 80% of black swans

While holding a position, spend 1% of your capital to buy Put options (equivalent to buying “accident insurance” for the position)

In the past, you were stumbling in the market alone; now, the light is here with me, and it’s always on. Follow along with Da Chen to take off 🚀