Total Contract Liquidation? $STG

After 8 years of trading contracts, I’ve summarized 5 low-risk methods. Learn them, and you’ll never be easily liquidated again:

1. Don’t fear high leverage, focus on position size
Actual risk = leverage multiple × position ratio. Using 100x leverage with 1% position size, the risk is the same as holding 1% in spot trading.

2. Stop-loss is not a loss, it’s a life-saving measure
In the 2024 crash, 78% of liquidations were people holding on through a 5% loss. Iron law: single loss should not exceed 2% of principal.

3. Calculate your position size before placing an order
Maximum investable amount = (Principal × 2%) ÷ (stop-loss ratio × leverage multiple)
With 50k yuan principal, 10x leverage, 10% stop-loss, the maximum investment is 1,000 yuan. $GUN

4. Take profits in three steps, don’t be greedy
Sell 1/3 at 20% profit, another 1/3 at 50% profit, and sell the rest when it breaks the 5-day moving average. Some have turned 50k into 1 million using this method.

5. Spend 1% to buy insurance
While holding a position, buy put options with 1% of your principal to cover 80% of black swan risks.

Whether trading can make money is calculable:
Expected return = (win rate × average profit) – (loss rate × average loss)
Losing 2% each time and earning 20%, even with a 34% win rate, can be profitable in the long run. $HOME

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