# Beginner's Contract Pitfall Guide: These 5 Traps Will Leave You Bankrupt!
Recently, I've seen too many beginners enter the contract market and lose everything, all due to the same fatal logic—these 5 traps, just stepping on one can wipe out your funds in seconds!
1. Reckless Leverage, Seeking Your Own Doom: Many beginners hold onto the obsession of “turning over in one night,” diving in with 50x or 100x leverage. But contracts rely on rhythm and risk control; a slight market movement can zero out your account. 3x or 5x leverage is reliable and can withstand a 20% fluctuation, giving you breathing room to adjust.
2. Refusing to Cut Losses, Holding Until Collapse: “Just wait a bit, it will rebound,” “cutting losses at 50% is too painful”—I’ve heard this countless times. The result is losing more the longer you wait, eventually leading to total defeat. Set stop losses when opening positions, and move the stop-loss line up with profits to lock in gains; this is the baseline for survival in contracts.
3. Fully Invested, Gambler's Mentality: “Opportunities are rare, go all in at once”? This mindset will only wipe out your principal. Here’s a practical formula: Maximum single position = principal × 2% ÷ leverage multiplier. For example, with a principal of 10,000 USDT and 10x leverage, don’t exceed 200 USDT per trade; even if the market suddenly changes, you won’t be back to square one overnight.
4. Emotion-Driven, Chasing Highs and Selling on Dips: Chasing highs during surges and panic-selling during drops, 80% of liquidations stem from this FOMO mentality. The market never rewards the uncalm; set a trading plan in advance and stick to it strictly, don’t stay up all night staring at the market, and completely eliminate emotions from your account.
5. Not Understanding the Rules, Getting Killed Instantly: Many novices only understand the market's cruelty after being “spiked” or “slippage” harvested. Always choose mainstream, regulated exchanges, and be cautious before extreme market conditions or major news; don’t let hidden tricks catch you.
The contract market is harsh but opportunities are always there. The ones who can truly make money are not the most aggressive, but those who understand how to avoid pitfalls and remain steady. Follow me, and I will teach you how to watch market rhythms, lock in opportunities, and avoid all fatal traps, growing from a beginner into a stable trader.
Focusing on BTC, ETH, SOL, BNB, and other core currencies, providing 3-5 clear spot and contract strategies daily.
Here, you can achieve: Say goodbye to losses —> Keep up with professional rhythms —> Build your own profit system, all three are essential.
