Many people ask me: “Should contracts be touched?”
Today I won't talk nonsense, just share my true insights after being repeatedly educated by the market.
When I first entered the industry, I naively thought: contracts are a shortcut to wealth—seeing the right move doubles it, reversing doubles it again, as if just a few clicks could change my destiny.
But the reality is:
Getting rich has never happened, while being liquidated has become a common occurrence.
Only later did I truly understand:
Contracts are not gambling; they are a weapon.
Used well, they are a sharp tool; used poorly, they can be fatal.
1. What is a contract? In one sentence: what you trade is not the coin, but the direction.
Buy more when bullish, short when bearish,
You profit from price fluctuations, not from the assets themselves.
It sounds simple, but the difficult part is maintaining a stable mindset.
2. Perpetual vs Delivery? Beginners should always use perpetual.
Perpetual contracts have no expiration date, are easy to grasp, logical, and have a high survival rate.
Delivery contracts require you to watch the time, control the rhythm, and understand the rules,
For beginners to touch it? That’s not a challenge; it’s handing over your head.
3. Leverage, forced liquidation, stop-loss—if you don't understand, don't touch contracts.
Leverage is an amplifier. The higher the multiple, the lower the margin for error.
To be realistic, starting with 3-5x is considered having a path to walk.
Forced liquidation is the market's final judgment on you.
Leverage maxed out, one fluctuation will empty you.
A stop-loss is your last lifeline.
This is not admitting defeat; it’s prolonging life.
4. The core of trading is not technology; it’s risk management.
Those who can truly go far always think before opening a position: “What is the maximum I can lose?”
Remember these few points; they can extend your life:
Absolutely do not enter with essential living funds
Single loss should not exceed 3% of total capital
Only trade BTC and ETH, which are stable and have fewer spikes
Avoid bizarre time periods in the early morning; chaotic markets only attract impulsive people
The most truthful statement is:
Contracts do not help you get rich; they only expose your weaknesses.
If you are anxious, quick-handed, and cannot endure, the market will immediately make you see yourself clearly.
If you are a beginner, first practice with a demo account to understand the rules.
If you have already lost to the point of numbness, stop, calm down, and rebuild discipline.
The market is always there,
But if the principal is gone, then you really have nothing left.
