Many beginner traders in contracts face the same dilemma: small capital size, lack of operational experience, and highly volatile psychology. These factors often become the direct cause of liquidation. Today, I share a practical methodology to help newcomers stay alive steadily and gradually accumulate profits.

**The Golden Rule of Initial Capital Allocation**

If you only have 1000 USDT starting capital, the first thing is to split your mindset — divide the money into 10 parts, investing only 100 USDT each time to participate in trading, using 20x leverage. Keep the remaining funds in a financial account, maintaining idle status. The benefits of this approach are obvious: single-loss is controllable, psychological pressure is low, and the cost of mistakes is minimized.

The key is, if you lose 100 USDT, do not think about adding more positions. Stop, rest for 1-2 days, and carefully review where the mistake occurred in this trade. After clarifying, re-enter the market — at this point, divide the remaining 900 USDT into 10 parts (each 90 USDT), and continue with a steady pace. Take profits gradually — take some profits when possible. This way, your mindset will become more and more stable.

**Position Management > Direction Judgment**

Many people oversimplify contract trading, thinking that as long as the direction is correct, they can make big money. In reality, the success or failure of contracts depends on position management. If the direction is wrong, 10x leverage can trigger liquidation directly, let alone full-position trading — which is a suicidal approach.

This logic is harsh but true: no matter how high your win rate is, even 90% accuracy, one big loss on a full position can wipe out all previous profits. Therefore, maintaining a light position is an iron law.

**Specific Stop-Loss and Take-Profit Points**

If a single loss exceeds 2% of your account, you should be alert — this indicates your position is no longer reasonable. If losses approach 6%, close all contract positions immediately and take a break. Give yourself a chance to calm down and avoid continuing trading in emotional chaos.

The timing for adding positions is also crucial: do not chase the top (market peaks are the easiest to lose everything in frenzy), and do not be swayed by emotions. Add to positions either immediately or after a pullback ends; hesitation in between will only cause missed opportunities.

When profits exceed 200%, set half of your position to a trailing stop (for example, when profits retrace to a certain level, automatically close), and set a stop-loss at the breakeven point for the other half. This can lock in most profits, and the remaining part is for increasing gains.

**Realistic Considerations for Mindset Management**

Negative emotions in life can directly influence trading decisions. When you’re in a bad mood, having a bad day at work, or experiencing consecutive losses, do not force yourself to trade. Going against the trend is even more forbidden. Keeping some core holdings is because when a truly profitable opportunity appears, you will have ammunition to participate.

**Framework for Beginners**

Initially, it is recommended to start with 30-50 USDT, 20x leverage, and set a stop-loss at a loss of 20-30 USD. Take profit when the profit retraces by 30%, automatically closing the position. These parameters allow you to experience contract volatility without risking liquidation.

After making profits, withdraw funds promptly and do not think about reinvesting to enlarge positions. Deposit 500-1000 USDT each time, entering in batches, and avoid putting too much in at once. Spend time practicing, developing a feel for the market, and truly understanding the rhythm before considering profit growth.

Stick to this method, and after three months, you will find your trading style has become completely different — more rational, more disciplined, and better able to withstand market pressure.