Woken up in the middle of the night by news bombardment - another person's account dropped to zero.

This time it was a 6000U account, fully invested with a 5x long position, and just because of a 3-point pullback, it went directly to drop to zero. When I saw the trading record, I was stunned: 5800U was all in, stop loss? That doesn't exist.

Many people think that using the entire account = high efficiency, which is the most fatal misconception. Using the entire account is like driving without brakes; if the direction is judged incorrectly, there won't even be a chance to remedy it.

**What really leads to liquidation is not the leverage itself, but rather having an excessively heavy position.**

Let me do the math for you: with an 800U principal, if you open a full position of 750U at 5x leverage, a reverse fluctuation of 6% will mean disaster; but if you only use 75U at 5x leverage? You would need an 86.7% fluctuation to lose everything, which means your risk resistance capacity has increased by 12 times.

The person who got liquidated put 96.7% of their money on the line, and with 5x leverage, they couldn't withstand even a slight pullback. This year, I've encountered quite a few pitfalls myself, but later I figured out three survival rules that not only prevented me from losing my principal but also increased my account by nearly 80%:

**1. A single transaction can use up to 7% of the total capital**
An account with 6000U can open a position of up to 420U at one time. Even if it triggers a 7% stop loss, the loss would only be a bit over 29, which is not too painful.

**2. Control a single loss within 1.1% of total funds**
For example, if you open a position of 420U with 5x leverage and set a stop loss at 1%, the actual loss would be 8.4U, accounting for about 1.1% of the total capital. Cut it if you have to, don't hesitate.

**3. Must be in a flat position when the market is unclear**
Don't get itchy to increase your position just because you've made profits earlier. It's better to wait until the daily chart breaks through key levels and the trading volume picks up before taking action.

I have a follower who previously experienced a monthly explosion. After using this method, he went from 3200U to 55000U in four months. He later told me: "I used to think that going all in was a gamble, but now I understand that living longer is more important than earning quickly."

There is nothing wrong with contract trading itself, but you must first learn how to protect yourself. Position management is not a joke.