Recently, I’ve been pondering a question: why do some people turn their fortunes around in the contract market, while others keep getting liquidated? The core comes down to one word—discipline.

I’ve found that the biggest problem for many people trading contracts is poor position control. Frankly, position management is the foundation of whether you can survive in the market. I’ve seen people with proper capital management turn $10k into steady profits, and I’ve seen others with $100k go broke in three months. The difference lies here.

Generally speaking, controlling your trading capital to about 10% of your total funds per entry is more reasonable. Taking $10k as an example, each trade would be $1,000, whether you’re bullish or bearish—that’s the logic. It sounds conservative, but you must understand that proper position management is what allows you to stay in the market long-term. When a trade is profitable, set your stop-loss at the entry price—don’t be greedy. If the market moves against your expectations and starts losing, absolutely do not add to your position against the trend unless your capital is large enough to withstand the volatility.

How exactly should you operate? Suppose your account has $10,000, and your margin control per trade is 5-10%, which means $500-$1,000 corresponding to 50-100 contracts. Don’t put all 50-100 contracts in at once; split them into 2 or 3 entries at different levels to reduce risk.

When adding to a position, if leverage remains the same, play with position ratios, following a 1:2:3 rhythm. For example, first 10 contracts, second 20 contracts, third 30 contracts. But if you want to increase leverage, you can do it like this: first with 20x leverage, second with 50x, third with 100x. Remember, the total of these three positions must stay within one-tenth of your total position size. Adjust leverage and position size flexibly so you can quickly recover when the market reverses or smoothly take profits.

How to choose leverage? My advice is to base it on the market scale. For long-term trading in big markets, use low leverage to strengthen risk resistance. Conversely, if you prefer quick in-and-out trades, you can use high leverage to accelerate gains—generally, when profits reach 30-50%, it’s time to take profits. The market moves too fast; you must learn to respect the market and know when to stop.

Ultimately, position management is the secret to surviving longer in contract trading. The crypto market is full of uncertainties, but as long as you control your positions and stay rational, you can find opportunities amid volatility. This isn’t a game of overnight riches; it’s a process of long-term, stable growth.