The most ruthless trick in contract trading is not guessing the trend wrong, but guessing the trend right and still burning the account. I had to pay over 700,000 to realize this.

Guessing the Market Right, But the Account Still Vanishes

In the first 6 months stepping into the world of contracts, I was full of confidence.
I read news quickly, analyze charts carefully, catching many major market movements.

👉 Uptrend – I long.
Downtrend – I'm short.

And the irony is:
most of the time I guess the direction correctly.

But the account balance decreased steadily like a heartbeat.

Until one day, looking at my account near zero, I sat down to review each payment order and suddenly realized:

I do not lose to the market.
I lose to my trading method.

The market didn't kill me – I walked into the trap myself.

Three traps that make traders guess correctly but still burn their accounts

The First Trap: "Pioneering at the Peak"

Just need to see the market just move, volume increase, candle breaking resistance:

👉 Enter the order immediately.
Enter strongly.
Use all capital.

I believe I am the 'forerunner'.

But the reality is:

  • I entered at the right moment when the team needed liquidity

  • Just entered → the price reversed

  • Stop loss got swept

  • Just cut → the market ran in the direction I predicted

👉 It's not that I'm wrong about the trend
👉 I entered at the wrong time

The market always needs pioneers to be bait.

The Second Trap: "Stubborn with Hard Stop Loss"

I once believed that:

"A 3% stop loss is a golden rule."

But in a volatile contract market, a hard stop loss is a feast for market makers.

There was a time I longed correctly for an uptrend:

  • Fake price breakdown → sweep stop

  • I entered again → got swept again

  • The third time I won't enter anymore
    → Pricesoars straight to the sky

I was not wrong in my assessment. I was wrong because I did not understand volatility.

👉 Stop loss must follow volatility,
👉 Not a dead number.

The Third Trap (Most Deadly): "All-In Recovery"

After a few losing trades, I started to think:

"Just one large order is enough to recover everything."

And thus:

  • Invest all capital

  • High leverage

  • Just need a few candles in the opposite direction…

📉 Liquidation.

The moment the liquidation notification appeared early in the morning, I stared at the screen motionless for nearly half an hour.

👉 Even if the trend is right
👉 The account still can't withstand noise

In contracts, it's not about how many times you're right, but how many times you can withstand being wrong.

Three Steel Rules That Helped Me Survive and Make Profit

After all, I forced myself to change – if I didn't want to leave the market forever.

1. Always Divide Positions Multiple Times – Absolutely No All-In

  • Divide capital into 3 parts

  • Enter each part according to confirmation

  • Wrong still has capital to fix

👉 The market is a marathon, not a gamble.

2. Flexible Stop Loss According to Volatility

  • Use ATR, price structure

  • Don't use the 'sacred 3%' number

  • Accept short-term fluctuations

👉 Get swept due to noise that is completely different from the wrong trend.

3. If Not Clear, Stay Out

  • Not enough signals → don't enter

  • Don't hold on to orders because of emotions

  • No 'hope' in contracts

👉 Not trading is also a correct trading decision.

Conclusion: Contracts Do Not Pay for Good Guessers

The contract market does not reward for:

  • The smartest person

  • The one who guesses the most correctly

Reward for:

✅ Good position manager
✅ Able to withstand noise
✅ Survived long enough

If you stay in the market, profits will find you. But if you all-in just because 'this time is definitely right' — the market will teach you a lesson that I had to pay a high price to understand.