How can a newbie in contracts start with 1000U and avoid getting liquidated quickly?

In the past couple of days, many friends who are new to contracts have come to ask if they can play with just over 1000 yuan and how to avoid getting stuck. I will summarize my experiences over the years and explain how to operate.

The first thing: You must divide 1000U into 10 parts to use. Each time, only invest 100U to enter the market. This is not being stingy; it's a way of survival. My suggestion for leverage is 20 times. Why? High leverage sounds like it can double quickly, but newbies can't hold on at all, their mindset will collapse step by step. 20 times is a dividing line, it can seize opportunities without the risk of getting liquidated with just a small mistake.

What about the remaining 900U? It's too wasteful to leave it idle, just throw it directly into a wealth management account to earn interest. This part of the money is your lifesaver, a psychological safety net — as long as it's still there, you won't be forced to do crazy things.

Then this is very important: if you lose the 100U, don't think about using the remaining money to average down and turn things around. Stop trading and first think about why you lost and where the problem lies. Then force yourself to take a break for 1-2 days, and don't look at the charts. The problem for many people lies here; they are afraid of missing out on market movements and rush to continue trading, resulting in even greater losses. In reality, Bitcoin's volatility is present throughout the year, and there are good opportunities every month. The key is to stay alive and have capital.

The mindset has calmed down. Split the 900U into 10 parts, with each part being 90U, and start again. This round needs to be much more cautious than the first round. The goal shouldn’t be too greedy, just think about making back the previous losses. If you make 300U this round, here’s a hard rule: only keep 100U as capital to continue using, and immediately transfer out the other 200U. Why do this? Securing profits helps stabilize the mindset, as human greed is an endless pit. If the 200U is still in the account, and a black swan event suddenly occurs, a single pullback could wipe it all out, and you’d have to start over from scratch.

Objectively speaking, the harsh reality of contracts: even if you only use 10x leverage, once the direction is wrong, a 10% drop can lead to getting liquidated. It's normal for Bitcoin to fluctuate 20% in a year; if you go all in every time, all the profits you've made before will eventually be wiped out. The most skilled traders in the industry have a success rate of 60%, which is already top level. Just think, even if you have a 90% win rate, that 10% failure is enough to lead you to ruin. Position management is the real matter of life and death.

There’s only one meaning to all this: contracts are not gambling, but a process that requires systematic risk management. Use your brain to calculate, don’t operate based on emotions. If you really want to proceed steadily, you have to follow this logic.