Contract trading, to put it simply, is about two words: position and mindset.

Recently, many brothers have asked me, with only a thousand dollars in funds, what’s the proper way to trade?
I’ll directly share my approach.
Suppose you have 1000U.
Step one: divide the money into 10 parts, each time take out 100U to trade, with a recommended leverage of 20X.
Newcomers shouldn’t play with too high leverage; your mindset won’t hold up.
The remaining 900U is for investment and as a backup.
If you lose the 100U, don’t think about adding more; instead, stop, review, reflect, and rest for a day or two.
The market moves every day, missing one or two waves isn’t a big deal.
Once your state stabilizes, divide the remaining 900U into 10 parts again, each now 90U.
Continue trading, but be more cautious.
Suppose you make 300U this time, then withdraw 200U, leaving 100U to roll over.
The benefit of this approach is that your account won’t get stuck in a position, and your mindset will be lighter.
Remember, it’s not hard to get liquidated in contracts.
With 10X leverage, if you’re wrong on the direction and it drops 10%, you’re wiped out.
Even if you’ve won a hundred times before, just one full-position, heavy trade, and a black swan event can wipe you out completely.
A truly skilled trader’s win rate of 60% is already very strong; success is never about being right every time, but about position sizing and rhythm.
My own iron rules:
• For small funds trading contracts, starting with 30-50U is enough.
• Keep leverage at 20X, don’t be greedy.
• Always set a stop-loss when entering; accept a loss of 20-30 dollars, don’t fight it.
• Use retracement for take profit; take profits when a 30% retracement occurs.
• When making money, know when to withdraw; don’t let the account number deceive you.
A few tips for newcomers:
• If you lose more than 2% in a day, stop immediately.
• If losses reach 6%, close all positions, cut losses, and rest for 2-3 days.
• When you’re in a bad mood or not in good condition, don’t trade.
• Never trade against the trend; the market is always more stubborn than you.
• Add positions only in a pyramid, never against the pyramid.
Contract trading is like this: if you can’t control your position and mindset, you’ll eventually get wiped out.
To go far, risk control must be your top priority.
If you still don’t know what to do now, follow Tiancheng.
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