Have you ever noticed a phenomenon? The contract market experiences a wave of liquidations every day, yet more and more people are getting involved. Why is that? To a large extent, it is because most people haven't really understood the rules of the game in this market.

Let's talk about the pitfalls of leverage. You think that opening 5x or 10x leverage simply multiplies your returns by 5 or 10 times. But what’s the reality? Suppose you invest 10,000 yuan as your principal and originally thought you would lose at most 500 yuan, but then you turn around and open a position of 30,000 yuan. It looks like 5x leverage, but what risk are you really taking? That's gambling with 60 times your capital. Many people are still completely unaware of the danger they are in.

The essence of the contract market is a risk hedging tool, not a place for small bets for pleasure. Where does your profit come from? To put it bluntly, it comes from other people's Get Liquidated. Professional traders understand this, so they spend over 70% of their time doing one thing: waiting. They resolutely refrain from acting when the market does not meet expectations, and once they do act, they aim for precise strikes. In contrast, some people feel itchy if they don't trade for a day, and in the end, all their earnings go to trading fees.

To survive longer in this market, it boils down to three words: anti-human nature. Stay calm when others panic, and pull back in time when others are greedy. Strictly cut losses and never hold on to a losing position; once you have profits, run faster than anyone else, and at least earn more than twice your set stop-loss position.

Some people say that contracts are equivalent to gambling, and this statement is both true and not true. You get liquidated because you are really gambling, while we make money because we are calculating – calculating risk factors, calculating profit and loss ratios, calculating market sentiment.

Final piece of advice: If you are still trading based on feelings, I suggest you turn off your computer and get a good night's sleep. Staying up late is exhausting, why bother? Can't find your own rhythm? Then take the time to learn and study those mature trading logics. Don't joke with your principal, and definitely don't treat your mindset as a bet.