On December 7, the wave of "long and short double killings" was too harsh, with 100,000 people on the internet liquidated, and $111 million evaporated in an instant.

Newcomer Xiao Li was caught off guard, investing all 1000U into BTC perpetual contracts, opening a 50x leverage bet on price increase, but BTC's price plummeted below $89,000, and his margin was instantly wiped out and forcibly liquidated.

It's not to scare newcomers; the key with a starting capital of 1000U is "defusing the bomb" not "all in".

The correct approach is to split it into 10 parts, moving only 100U for each position, keeping leverage strictly within 20x.

You should know that 50x leverage requires only a 2% reverse fluctuation to be liquidated, while BTC's daily fluctuations often exceed 5%.

The remaining 900U should be placed on mainstream platforms for stable wealth management, such as Binance's XUSD savings, which offers an annualized rate of 3.2%. Although it's not high, it can protect your principal.

Last week, Old Zhou used 100U to try shorting ETH, making 300U, and immediately withdrew 200U, leaving only 100U in the account.

He often says, "Contracts are razors, not sickles," and that a single loss should never exceed 2% of total funds; if he has three consecutive losses, he will stop and review.

Having seen too many people double their money overnight only to return to zero, I finally understood: a win rate of 60% is sufficient; the key is to control risk.

Profitable contracts must set stop-loss orders to secure profits; if margin gains exceed 200%, lock in half the profit;

When emotions are low and you've just incurred losses, absolutely do not open new positions, let alone go against the trend.

For newcomers trading contracts, starting with 30U is the safest; cut losses at 20U, and immediately close positions if profits retract by 30%.

Remember, the current expectation for the Federal Reserve to cut interest rates is 87%; there are plenty of opportunities in the market, so don't leave all your chips on the table. Survive, and you've already outlasted 90% of retail investors.

Follow me for practical techniques that can be implemented; see you in the Binance chat room.