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Here's a sobering fact: why is it that every day someone gets wiped out in a contract, yet new traders keep pouring in?
It sounds exciting, but the truth is harsh—it's not the contracts that cheat you, but most people haven't thought through the rules and jump in impulsively.
Exchanges advertise 5x, 10x leverage, but do you really think you're trading with 5 times the capital? That's wishful thinking. If you have $10,000 in your account, you might be comfortable losing a few hundred dollars, but then you open positions of $30,000 or $50,000. You say you want to be cautious, but in reality, you're playing with risks dozens of times higher. Frankly, liquidation was doomed the moment you pressed the open position button.
Real skilled contract traders don't treat this as an ATM. They have a systematic way of thinking, summarized in one sentence: first, know the maximum loss you can afford, then consider how much you can make.
Every penny you earn in contracts isn't given by the market for free, nor is it luck—it's what others lose when they get liquidated. So you'll notice, what are professional traders mostly doing? Waiting. They avoid trading in unpredictable markets, preferring to stay out of the game. When they do trade, their thinking is crystal clear, and risks are tightly controlled.
In contrast, most traders go in and out every day, paying enough in fees to cover a worker’s salary, and profits become a luxury. Even more absurd, risk management depends entirely on mood—if they're in a good mood, they dare to hold heavy positions; if bad news hits, they panic and cut losses.
To survive in contracts, the core principle is two words: against human nature.
While others panic and buy the dip, you hold back; when the market is hot as hell, you hit the brakes. It sounds easy, but in practice, it's hellish.
The most basic rules, engraved in your mind:
- The maximum loss per trade is 5% of your account—no more
- Stop-loss isn't decoration; it’s a must-have
- When you're right about the direction, don’t be greedy; let profits run, with at least 2 to 3 times room
Stop talking about "contracts are just gambling." If you get liquidated, yes, you're gambling; if someone profits every month, it's because they are calculating precisely. The difference is huge.
If you're still relying on gut feeling, emotions, or staying up all night to trade, I have to tell you honestly: go to bed early. In dreams, anything can happen, any coin can rise.
Following the right path is always more valuable than running faster.