People often ask me: "Can contracts really be played with?"

I don't want to talk about any grand theories; I just want to share what I've truly understood after being pressed to the ground by the market several times.

When I first entered the market, my mind was flooded. I thought contracts were the password to quick wealth—if you guessed the right direction, your account would double; if you guessed wrong, you could recover it back. I felt like I could just operate a few times and become rich overnight.

What happened later? There was no dream of getting rich, but I did accumulate quite a bit of experience in losing money.

Later I truly understood: a contract is not gambling at all, it is a knife. If sharpened well, it can help you eat meat; if used incorrectly, it will send you off the stage directly.

**What exactly is a contract delivering?**

To put it simply: what you are trading is not the currency itself, but your judgment about the direction. Go long if you are bullish, go short if you are bearish. What you earn is not from holding positions, but from the price fluctuations. Sounds simple, right? The challenge lies in keeping a stable mindset.

**Perpetual Contract vs Futures Contract**

Many newcomers cannot distinguish the difference between these two, but the distinction is quite significant.

Perpetual contracts have no expiration date, are easy to grasp, and last long. They are especially suitable for beginners to explore.

When trading futures contracts, you need to pay close attention to timing, calculate the rhythm, and understand complex logic. If a novice jumps straight into trading futures, it's not challenging themselves; it's a form of self-sabotage.

**Three Key Things: Leverage, Liquidation, Stop Loss**

Leverage is like a magnifying glass. The larger the number, the more terrifying the fluctuations. If you want to live steadily, a leverage of 3 to 5 times is a reasonable starting point.

Forced liquidation is the system's police. It sees that you are about to be liquidated and kicks you out of the game directly. If the leverage is too high, a small fluctuation in the market can lead to your immediate exit.

Stop loss is the last lifeline for oneself. It's not about giving up, it's about self-rescue.

**What really allows one to survive until the end**

It's not a complex technical analysis, but rather risk management.

Those who are still making money always know clearly before opening a position - how much I can lose at most, and then strictly follow this rule.

**Essential Checklist for Beginners**

Never use your living expenses as capital; this is not a joke.

Limit a single loss to within 3% of the total capital; this red line cannot be loosened.

Prioritize trading cleanly trending coins like BTC and ETH, and avoid randomly selecting those small coins that are prone to spikes.

Avoid this crazy time period in the early morning. The market conditions can get so chaotic that it can send you straight home.

**The most heart-wrenching yet most truthful sentence**

Contracts are not tools to make you rich; they are a mirror that exposes human greed and fear.

An unstable mindset and quick fingers can revert you back to your original state in just a second.

**Advice for Different Stages**

If you are just starting out: first practice repeatedly with a demo account to solidify your fundamentals before using real money.

If you have already lost fear: stop, take a deep breath, and calmly reorganize the trading rules.

The ultimate truth is so simple: the market is always there, but losing your capital is the real goodbye.