From frequent liquidation to stable monthly profits, the turning point is often not about talent or luck, but whether a repeatable and executable trading system has been established. This approach may seem simple, but it is often overlooked—because it has no fancy tricks, only the most basic principles.

**Layer One: Capital Safety Is a Prerequisite**

Any profit-making strategy must withstand the test of the market. A strategy without proper money management is like dancing on the edge of a cliff. How exactly to do it? Divide the principal into ten parts, and only use one part at a time to try trades. The benefit of this is that even in extreme market conditions, a single loss is kept within 2%. Once the stop-loss line is hit, exit immediately—no luck-based thinking. For beginners, it is recommended to disable leverage first; experienced traders should not leverage more than 10% of the total capital. Historical data shows that most liquidation cases stem from neglecting this point.

**Layer Two: Doing Less Is Better Than Doing It Wrong**

Many believe that making money depends on placing more trades. In reality, the opposite is true—the market rewards those who pick the right direction, not those who trade frequently. Only choose to operate unilaterally (only long or only short), avoiding betting on both sides. Before trading, set three numbers in advance: entry price, 3% stop-loss point, 5% take-profit point. Mechanical execution of this plan is much more reliable than guessing on the spot. The first two trades of each day are usually of the highest quality; after the third, you start paying more in fees.

**Layer Three: The Three Deadly Traps**

Counter-trend adding is a death move for beginners—each time you add to your position, your account gets closer to liquidation. Meaningless high-frequency trading, with fees eating up more than half of the profits. Another hidden trap: when holding a position, saying "it should still go up," which eventually turns into holding through the move, causing the expected gains to turn into losses.

**Numbers Speak: The Difference Between Two Approaches**

Assuming an initial capital of 100,000:

Wrong path: Full position with high leverage → Adding positions during a decline → Holding through liquidation → Losing everything.

Correct path: Use only 20,000 as the base position → Strictly follow 3% stop-loss and 5% take-profit → Only two carefully planned trades per week → Monthly profit stabilized around 8% → Compound annual return exceeds 150%.

**Core Principles Quick Summary**

What to do: Use idle funds, follow rules, stick to unilaterals.

What not to do: Full position, hold through losses, block both sides.

Final words: Contract trading is not a casino, nor a place to gamble with living expenses or borrowed money for the future. Those who bet with their living expenses ultimately lose their lives in the market.