**Fund Allocation and Leverage Usage:**
It is advisable to divide 1000U into 10 portions, trading 100U each time with a leverage of 20x. For beginners, do not use excessively high leverage; 20x leverage is already sufficient. If losses occur, avoid blindly adding to positions; first reflect and summarize experiences before making adjustments. If funds shrink to 900U, divide it into 10 portions to continue operations. **When profits reach 300U, keep 100U as principal and withdraw 200U to solidify profits**, avoiding leaving all profits in the account.
**Position Management and Risk Control:**
In contract trading, full margin operations carry significant risks, especially when using leverage. For example, with 10x leverage, a 10% drop in price could lead to liquidation. Therefore, position management is essential. Reasonably control each position and avoid investing too much at once.
- **Loss Control**: When losses exceed 2%, be vigilant; a 6% loss should prompt a complete liquidation of positions to avoid further losses.
- **Take Profit Strategy**: Set break-even take profit levels to ensure there are no losses when profits reach a certain level.
- **Rest Period**: After consecutive losses or when feeling emotionally unsettled, it is crucial to stop trading for 2-3 days to adjust mindset and strategies.
**Entry and Position Increase Strategies:**
Beginners should not blindly chase prices. Be cautious when increasing positions after making a profit; appropriately use the pyramid method to gradually increase positions during price corrections instead of going all-in. **When profits exceed 200%, set half of the funds for a 40% retracement take profit, and the other half for break-even take profit** to ensure profits are not easily given back.
**Mindset and Discipline:**
The mindset for trading is crucial. If you're experiencing losses or emotional instability, it's advisable to take a break to avoid making poor decisions while feeling down. Only by staying calm and rational can you manage risks and profits better.
**Beginner Advice:**
For friends with smaller capital, it is recommended to start with 30-50U, using 20x leverage, and setting a stop loss in the range of 20-30 dollars. Set profit-taking at a 30% retracement of profits and gradually increase positions after becoming proficient.
**Additional Advice:**
- **Learning and Accumulating Knowledge**: In contract trading, understanding market trends, analyzing technical indicators, and studying historical data is very important; never rely solely on others' advice.
- **Risk Management is Key**: Even if you use low leverage, ensure that the risk for each trade is controllable to prevent a single liquidation from affecting your entire capital.
- **Combining Long-term Plans with Short-term Trading**: During significant market fluctuations, you can accumulate profits through short-term contract trading while making long-term plans according to market cycles, waiting for a bull market to achieve greater returns.
**Summary:**
Contract trading is a high-risk, high-return investment method. Beginners should start with small amounts, strictly control positions, learn stop loss and take profit strategies, manage emotions, and gradually improve their trading skills and experience. In this market, calmness, rationality, and discipline are the keys to success.