When I first started trading contracts, I was no different from most newbies—spending all day studying various technical indicators, staying up late watching the charts for fear of missing any fluctuations. I filled my candlestick charts, cycling through trend lines, Fibonacci retracements, MACD, RSI. But in the end? My account shrank day by day, and my mindset collapsed along with it.

The day I lost my fifth account, I finally understood a truth: I had been using the wrong trading method from start to finish.

**Why do so many people fail to avoid liquidation?**

Honestly, it’s not because they’re not smart enough, but because they keep making the same three mistakes over and over.

Frequent trading is the first trap—always trying to catch every price movement, but ending up losing all profits to fees and slippage. Emotional adding to positions is the second trap—losing money and unwilling to accept it, then frantically adding more to average down, ultimately getting wiped out in one big wave. The third trap is having no stop-loss—always hoping the market will reverse, losing more and more, until finally getting trapped tightly. I’ve fallen into all these traps until I completely changed my strategy and finally got out.

**The turning point comes from three ironclad rules**

First, I only act at key points—no guessing tops or bottoms, only trading breakouts or pullbacks after trend confirmation. Second, I add to positions only when there’s floating profit—absolutely no averaging down, just letting winning trades run. Lastly, I set stop-losses in advance—never risking more than 2% of the principal on a single trade.

It sounds simple, but executing it is incredibly difficult. The market always uses various temptations to make you break your rules.

**The critical shift from 5,000U to 100,000U**

I gave up the illusion of “making money every day” and started patiently waiting for high-probability opportunities. 80% of the time, I do nothing but observe the market; only 20% of the time do I make precise entries, only when signals are very clear. When I make money, my top priority is to preserve the principal—never let greed wipe out all the profits.

With this simple shift, my account began to grow steadily.

Ultimately, trading is a game of probabilities, not gambling. The market won’t present opportunities every day, and learning to wait is the highest skill. Losses are part of trading; the key is to control the risk. Small profits accumulate slowly, and controlling small losses prevents big ones. This compound effect is how long-term, stable profits are achieved.