$BNB $SOL $XRP
Total liquidation of contracts? Actually, it's because you don't understand these principles
After eight years of contract trading, I have summarized a principle: liquidation is really not just bad luck; it's about not doing proper risk control.
The following simple low-risk methods can change your mindset about contracts:
1. Don't be afraid of high leverage; the key is how much you invest: for example, using 100x leverage but only trading with 1% of your principal, the actual risk is similar to using all your money to buy spot with 1%.
The core idea is: Real risk = Leverage multiple × Your invested position ratio.
2. Stop-loss is not a loss; it's insurance for your account: During the market crash in 2024, 78% of those who got liquidated lost 5% but stubbornly held on without a stop-loss.
Experienced traders follow a strict rule: the money lost in a single trade must not exceed 2% of your principal.
3. Calculate your position before taking action: There’s a simple formula: the maximum amount you can invest should not exceed (Principal × 2%) divided by (Stop-loss ratio × Leverage multiple).
For example, if you have 50,000 in principal, and can accept a loss of 2%, using 10x leverage, you can only invest a maximum of 5,000.
4. Take profit in three steps; don't be greedy: Sell 1/3 when you make 20%, sell another 1/3 when you make 50%, and if the remaining drops below the 5-day line, sell all.
In 2024, someone used this method to grow 50,000 in principal to 1,000,000.
5. Spend a little money to buy “insurance”: When you have a position, use 1% of your principal to buy a Put option (consider it as buying insurance), which can cover 80% of unexpected risks.
During that unexpected significant drop in 2024, this helped preserve 23% of the principal.
Whether trading can be profitable can actually be calculated: (Winning ratio × Average profit per win) minus (Losing ratio × Average loss per loss).
If you limit your maximum loss to 2% and take 20% profit, even with only a 34% probability of winning, you can still make a profit in the end.
Finally, remember four strict rules: Do not lose more than 2% of your principal in a single trade; Trade a maximum of 20 times in a year; Profits must be at least three times the losses; Do not act for 70% of the time; wait for good opportunities.
Do not rely on your mood to trade; follow the established rules, and that is the key to consistent profitability.#美联储取消创新活动监管计划 #美国宏观经济数据上链 #特朗普取消农产品关税 #美国初请失业金人数 #以太坊市值超越Netflix
