Newcomers to derivatives trading always ask this question: I only have a few hundred to 1,000 bucks, how can I avoid getting wiped out?

Honestly, your fear is justified. The main reason small funds are most likely to get trapped is simple — treating yourself like a wealthy trader.

I've seen too many small traders survive, and none of them started with heavy positions. The first step isn't researching coins or analyzing technical indicators — it's two words: position control.

Take 1,000 bucks as an example. My approach is straightforward — divide it into 5 parts, only use 200 bucks per trade. What's the benefit of doing this? It leaves room for trial and error. Using 5 to 10 times leverage is enough; those tricks of 50x or 100x are not trading, they’re waiting for the market to spike and blow you up. Keep the rest of your capital untouched — that’s your lifeline.

If you really lose one part? Don’t add more positions, don’t get emotional. I used to make this mistake — after losing, I’d be angry and keep adding, eventually going all-in and wiping out my account. Only then did I realize that sometimes stopping is more valuable than continuing. The market offers opportunities every day; you don’t need to chase every trade. Take a day or two off, think through why you lost, then come back.

Another very important move: always withdraw profits. For example, if your account has a floating profit of 500 bucks, don’t put it all back in. Withdraw 300 bucks, leave 200 bucks to trade with. This way, you can keep your mindset stable and prevent your trading from becoming reckless. I’ve seen too many people hesitate to withdraw profits when they see a few hundred bucks floating, only to get stopped out or wiped out by a spike.

And here’s a harsh fact: in derivatives trading, with 10x leverage, a 10% wrong move means you’re out. Is a 10% daily fluctuation in Bitcoin difficult? Not at all. Professional traders have a win rate of around 60%, so survival isn’t about being right all the time — it’s about keeping your position size small enough and setting stop-losses decisively.

My trading bottom line is simple: if daily losses reach 2% of your total funds, be alert; if it hits 6%, close the software immediately. Protect your principal first, then let profits run. Never let big wins turn into wasted effort.

For beginners, just remember these points: don’t go all-in with small funds, use low leverage, stop-loss early, and take profits when available. Money is accumulated slowly, not made in one shot.