Contract trading is a double-edged sword for small-cap players — low threshold, high temptation.

I've seen too many beginners start with just a few hundred dollars and try to leverage 50x or 100x, only to be wiped out by a single spike from the main force. Honestly, this isn't trading; it's just another name for gambling.

**Splitting funds is the first line of defense**

Suppose you have $1,000 in starting capital. Don't be greedy and go all in at once. Divide it into 5 parts, and only use $200 each time to enter the market. Keep leverage controlled at 5-10x, so even if you lose on a single position, you won't be wiped out. If you lose $200, don't add more to the position, and don't get emotional. Take a day or two to reflect on where the loss came from, calm your mind, and then re-enter with a smaller position.

**Take profits and lock them in**

This is the easiest point to overlook. Making a $500 unrealized profit feels great, but a spike can wipe it out instantly. My approach is: once you make a profit, transfer most of it out immediately, for example, move $300 out, leaving only $200 in the account to continue trading. Having real gains in hand makes subsequent trades less stressful.

**Stop-loss is the last line of survival**

Be alert if daily losses reach 2% of your total funds. If losses hit 6%, I shut down the software immediately and stop looking at it. For profitable trades, lock in the initial capital first, then let the profits run. Many people fall into the trap of thinking, "It looks good for now, I’ll wait a bit longer."

**Math is ruthless**

With 10x leverage, a 10% wrong move means total loss. For coins like BTC, a 10% daily fluctuation is common, not an extreme market condition. No matter how accurate your judgment, you can't beat uncertainty. The secret to survival is small positions combined with timely stop-losses, not expecting perfect predictions.

So, the core logic for small funds boils down to four words: Stable, Small, Guard, Exit. Don’t rush aggressively, avoid heavy positions, stop-loss early, and take profits quickly. Money grows slowly through compounding; going all-in only speeds up your exit.