Recently, I’ve seen too many people enter the market only to lose everything within a few days. Upon closer inspection, it’s usually the same pattern — a bad decision, and the account is wiped out in seconds. Let’s analyze some of the most common pitfalls.

**Leverage Too High**

Many start out aiming to double their money in one shot, going all-in with 50x or 100x leverage. As soon as the market moves slightly, the principal is gone. Contract trading isn’t about how brave you are; it’s about balancing profit and risk. A leverage of 3 to 5 times is actually a comfortable range — it can withstand normal fluctuations and still leave room for adjustments.

**Opening Positions Without Stop-Loss, Going All-In**

People often say, “Just wait a bit longer, it’ll rebound,” or “I’ve lost so much, I can’t bear to cut.” Hearing this mindset repeatedly, the outcome is usually the same. The true trading logic should be: set a stop-loss first, and when you make a profit, move the stop-loss upward. Survival is more important than making a huge profit in one go.

**All-In on a Single Trade**

Feeling that an opportunity has come and risking all your assets? That’s not trading, that’s gambling with your life. A healthy approach is to limit risk on each trade to within 2% of your principal. For example, with a principal of 10,000U and 10x leverage, keep each position under 200U. This way, even in extreme market conditions, you won’t be wiped out instantly.

**Being Driven by Emotions**

Chasing after gains when prices rise, panicking when they fall — once FOMO takes over, liquidation is just around the corner. Those who truly make money plan ahead and follow strict rules. Avoid staying up all night watching the charts; separate your trading emotions completely.

**Not Understanding the Platform’s Behavior**

Slippage, price gaps, strange reactions during extreme market conditions — many people only realize these issues after being “educated” by harsh reality. Choosing top-tier exchanges is safer, and avoid making big moves before major negative news or extreme volatility.

The contract market is indeed brutal, but once you understand the rules thoroughly, opportunities will always be there.