Risk Management
Risk management is the most important part of trading perps, here is how you can manage your risk effectively
Start with Low Leverage
Just because 50-100x leverage exists, it doesn't mean you should use it. Always aim to keep your leverage as low as possible - your trade has a sensible liquidation price and you still have margin available to open more trades
Risks of using high leverage:
Your liquidation distance is reduced
Normal volatility becomes dangerous to your position
You emotions will play a bigger role and your decision making will be worse
Position Sizing
Size your position so that if your stop loss is hit, you only lose a small % of your account
The best way to get your position size is to work backwards
Decide your invalidation / stop loss level
Set your size so that the loss at that level = your chosen risk %
ALWAYS have a Stop Loss
Having a set level where you will accept you're wrong will keep you from losing more than intended in situations where you are wrong