The Law of Survival in Contract Trading: 10 Core Principles Paid for with Real Money

This market has never lacked people coming and going. Some people multiply their accounts tenfold in a week, only to return to zero the next day. Some quietly go through three bull-bear cycles, ultimately still growing steadily. I have also been “taught a lesson” by the market many times, and everything I share below is experience earned with real money, real sweat, and sleepless nights. Here are 10 ironclad principles to help you survive and advance in futures trading.

1. Halve Your Position, Double Your Longevity “Full margin is the shortest path to account burn-out.” That was a veteran trader’s words to me when I first started – and I didn’t listen. I used to be confident in a trade, going full size. Just a 5% reversal would wipe out my account. Since then, no matter how certain a trade looks, I enter with half the initial position. This is not cowardice, but wisdom. Opportunities are always available, but capital only comes once.
2. Fail Twice, Stop Immediately Have you ever been in a situation: entering the wrong coin twice, still not accepting it, trying a third time? The result is usually more mistakes on the third, fourth… My rule: same coin, two consecutive wrong trades – stop trading immediately. It’s not that the coin is bad, but my psychology is out of sync. Switch to another trade or take a break, come back the next day, and your mind will be much clearer.
3. Cut Losses as a Safety Rope, Not Just Decoration Some set stop-loss just for show. Some set it too far away. Some never set one because they believe “it will come back.” In 2018, I witnessed a friend’s account drop from 200,000 yuan to 2,000 yuan just because he refused to cut losses. Cutting losses is mandatory. If you don’t want to lose a little, one day you will lose everything.
4. No Trend, Best to Watch There are phases when the market has no structure, no liquidity, no momentum. Trading at these times is very prone to noise. I learned that: if there’s no trend, no clear setup – stay out. Waiting is also part of trading, and the most important part.
5. Don’t Be a “Trade Hunter” See others bragging about profits, eyes red, rushing to copy their trades? That’s the fastest way to the top… and then into the hole. I once followed a “master,” he took profit early, I got stuck at the top. Lesson: Trade according to your own rhythm, that’s the way to go long-term.
6. Trading Is Not Punching a Card Not every day needs a trade. If there’s no good setup, staying out is the smartest decision. If I can’t find at least three reasonable entry points in a day, I take a break. Trading frequency is not proportional to profit – it’s even inversely related.
7. Losing Streaks Are Not for Recovery Losing consecutively and then wanting to “go all-in to recover” – that’s a deadly mindset. My rule: two losses in a day – stop trading. Just this simple rule has helped me avoid many account crashes.
8. Don’t Scalping Without Understanding Structure Scalping is not about guessing up or down, but about catching the rhythm and structure. It’s a game of speed, discipline, and precision. I once was in an uptrend but kept shorting because “the price is high.” The result was eight consecutive stop-losses. That’s the price of not understanding the structure.
9. Don’t Force Opportunities Real opportunities don’t require you to force them. If you have to persuade yourself to enter a trade, it’s best not to trade at all. In the past, I was afraid of missing out. Now, I’m afraid of entering the wrong trade. Mindset changes, results change too.
10. Three Questions After Each Trade After every transaction, I always record: Why did I enter?What’s the exit plan?Is there anything I regret or need to improve? This is not just a formality, but the key to progress. My trading journal is my most valuable intangible asset. Conclusion There are no geniuses in futures trading, only discipline. Those rules that seem restrictive are actually what bring true freedom. When you are no longer driven by emotions, when trading becomes consistent, boring, and systematic – that’s when you’re on the right path. In 2026, the market will be more volatile, and opportunities will be more abundant. But the last survivor is always the one with principles. Discipline is a trader’s greatest capital. Let’s move forward together.