After many years in the contract market, I’ve found that the fastest to die is never those who can’t read the charts, but rather those holding small funds who still want to eat a big meal in one bite.

Newcomers generally have a common problem — they have $1,000 but insist on trading as if they had $100,000. The result is always the same: one wrong move, and the account is wiped out. Then they wonder, why did I lose everything?

It’s not that hard to survive with small funds. Basically, there’s one principle: don’t put all your chips in at once. How to do it specifically? My approach is to split $1,000 into 5 parts, and only use $200 each time to enter the market. A leverage of 5 to 10 times is enough. Those with 50x or 100x leverage? That’s not skill, that’s waiting for a margin call.

The three biggest pitfalls for beginners are — continuing to add to losing positions, which leads to bigger losses and eventually wiping out the account; trading continuously without rest, which results in emotional trading and losing control; and the most painful one — never taking profits, only earning but never truly taking the gains out. The market is never short of opportunities; what’s lacking is calmness. If you’ve been losing consecutively, instead of forcing a rebound, it’s better to pause for a day or two and review what went wrong. That’s 100 times more important than any quick rebound.

What does a truly stable trading approach look like? When you make $500, immediately transfer $300 out, leaving $200 to continue trading. Having cash on hand keeps your mindset stable. Don’t let the money you’ve already earned turn into the money you might have earned.

Here’s a reality many overlook — with 10x leverage, just a 10% wrong move in your direction and you’re out. And a 10% daily fluctuation in Bitcoin is very common. Why do experienced traders last longer? Not because they predict perfectly, but because of three points: they keep their positions small enough, they run fast enough, and they admit mistakes quickly.

My own rule is this — if I lose 2% of my capital in a day, I remind myself; if I lose 6%, I stop trading altogether; and profits are first protected, then I consider taking risks. Remember this: don’t lose money first, only then can you talk about making money.

Contracts in the crypto market are like a double-edged sword. When used correctly, they amplify efficiency; when misused, they also amplify human weaknesses. Small funds rely on time and discipline to grow, not on a big gamble. Money is accumulated slowly, not rushed out recklessly. Your biggest problem right now is: is it your position size that’s out of control, or your mindset that’s unstable?