Contract Beginner's Pitfall Guide! 5 Traps to Avoid for Guaranteed Profit Without Liquidation

As a newcomer to the contract market, the biggest fear isn't market fluctuations, but stepping on landmines!

In recent days, I've seen too many friends lose everything as soon as they enter, all due to the same deadly logic.

Once you step on one, you can lose everything in seconds. Today, I'll help you avoid these pitfalls and save you hundreds of thousands in tuition fees!

First Trap: Using Too High Leverage.

Many beginners hold the mindset of "turning around in one night" and start with 50x or 100x leverage, only to see their accounts wiped out with a mere 5% market fluctuation.

I once tried 20x leverage early on and lost 30% due to a small market spike; later, I consistently used 3-5x leverage, which could withstand a 20% fluctuation, allowing room for adjustments and recovery.

Second Trap: Not Setting Stop-Loss and Holding On.

"Wait a bit, it will rebound" or "losing 50% and cutting losses is too painful"—I've heard this countless times, and the result is always deeper losses the longer you wait.

When opening a position, you must set a stop-loss. I set a strict single trade stop-loss of ≤4%, and after making a profit, I will move the stop-loss line up accordingly to lock in profits—contracts without stop-losses will eventually be eliminated by the market.

Third Trap: Full Margin Betting.

"Opportunities are rare, let's go all in"—this mindset is like giving away money!

Here's a safe formula: Maximum single position = Capital × 2% ÷ Leverage.

For instance, with 10,000 U capital and 10x leverage, don't exceed 200 U per trade; even if the market changes suddenly, you won't return to square one overnight.

Fourth Trap: Emotional Trading.

Chasing after spikes or panicking during drops—80% of liquidations stem from this.

I now never stay up late watching the market; I prepare a trading plan in advance, strictly executing entry price, take-profit price, and stop-loss price, completely eliminating emotions from my account— the market always rewards calm individuals.

Fifth Trap: Not Understanding Exchange Tricks.

Many newbies realize the market's cruelty only after being wrecked by "spikes" and "slippage."

You must choose mainstream, regulated exchanges, especially before extreme market conditions or major news.

The contract market is cruel but opportunities are always present; those who can truly make money are not the most aggressive, but the ones who understand how to avoid pitfalls and are the most stable.

Those who can survive and still profit in the market are always the ones who dare to reach out first.

Are you ready? @bit福多多

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