Contract trading is often misunderstood by newbies as a game of chance, but in reality, it is a trading behavior that requires strict discipline. I have encountered too many people who enter the market dreaming of doubling their profits, only to be "beaten" by the market within a few days. Instead of continuing to make mistakes, I would rather share my accumulated experience over the years in a straightforward manner.

**The True Nature of Contracts: Leverage Amplification, Not Gambling**

The core logic of contract trading is simple - to control a larger position with a relatively small margin. Go long for a bullish market, go short for a bearish market, and profit from the price difference. But the key here is that it amplifies your gains while also amplifying the risks. Many people confuse the concept and treat it as a simple guessing game of price rises and falls, which essentially becomes a way of handing out money.

**Perpetual Contracts vs Delivery Contracts: Choosing Determines Survival Cycle**

There are mainly two types of contracts on the market. Perpetual contracts have no expiration date, making them more suitable for short-term trading, but one needs to pay attention to the changes in funding rates—when the rate is positive, longs have to pay shorts, and vice versa. Delivery contracts have a clear settlement time, making them suitable for traders who like to take profits and losses regularly, but the downside is that flexibility is relatively limited.

What is the best practice path for a Newbie? First, familiarize yourself with the trading rules on perpetual contracts using a demo account. After mastering the basic operational logic, switch to live trading. This step may seem simple, but it can save you a lot of tuition.

**Leverage Ratio: The Temptation and Traps of High Multipliers**

A 10x leverage combined with a 10% drop can cause you to be liquidated, while a 100x leverage can wipe out your account with less than a 1% drop. This is not alarmism, but a mathematical reality. High leverage superficially amplifies the potential for profit, but in reality, it amplifies the impact of each fluctuation on your emotions.

My specific suggestion is as follows:
- The single loss limit is set within 3% of the account (assuming a principal of 100,000, the maximum single loss is 3,000).
- The leverage ratio is stable at below 5 times, so even if the market fluctuates dramatically, direct liquidation will not occur.
- Trading targets are focused on mainstream coins like BTC and ETH, staying away from altcoins that are prone to sharp declines.

**Risk Control System: A Necessary Condition for Survival**

Stop-loss must be executed decisively. Set the stop-loss price when opening a position, and exit without hesitation once it is reached. Don't expect a rebound; the market's rebound is never an obligation.

In terms of timing, the market fluctuations are often the most intense during the early morning and around the release of significant economic data. It is best for Newbies to choose to operate during the day (for example, from 9 AM to 6 PM). Regarding position management, the initial opening position should not exceed 10% of the total capital, and only after making a profit should one consider gradually increasing the position.

**Disciplinarity Determines Long-term Survival**

Market opportunities are endless, but once the principal is used up, everything is over. Limiting the number of trades to 3 times a day can significantly reduce the loss of transaction fees; remember to regularly withdraw a portion of your profits for safety; after each loss, you need to review and analyze it to understand the specific reasons for the failure.

Contract trading can indeed generate considerable profits in the short term, but the prerequisite is that you need to survive until that day. Accumulate experience through simulated trading, repeatedly test and learn with small amounts of capital, and ultimately earn profits within your understanding—this is the true long-term survival rule.