Many friends who are new to trading often ask me the same question: "Is contract trading reliable? Can I play it?"

I don't want to talk about theories; I just want to share my real feelings after being severely taught by the market.

When I first entered the market, I was naive too. I thought contract trading was a magical quick-rich scheme—if you see the right direction, you double your money; if you see the wrong direction, you reverse your position. It seemed like a light touch could achieve financial freedom. But in reality? I never saw sudden wealth; instead, I experienced several margin calls. Only then did I realize: contracts are not gambling; they are a double-edged sword. Used correctly, they can make money; used wrongly, they can wipe you out.

**What is the essence of contracts**

Simply put—you're not buying real coins, but rather making judgments about the market direction. If you think prices will rise, you go long; if you think they will fall, you go short. You're not earning from the coins themselves, but from the price difference. It sounds simple, but the real challenge lies in maintaining a stable mindset.

**Perpetual or delivery, how should beginners choose**

Honestly, perpetual contracts are more suitable for beginners. They have no expiration date, have low entry costs, are easier to understand logically, and offer ample room for adjustment. Delivery contracts are different—they require attention to expiration dates, involve calculating time costs, and understanding more complex logic. Beginners playing delivery contracts directly? That's not challenging yourself; that's just giving away money.

**Leverage, liquidation, stop-loss—three concepts you must understand**

Leverage is like a magnifying glass; the higher the multiple, the more any small movement can wipe you out. My advice is to start with 3 to 5 times leverage for safety. Liquidation is a protective mechanism of the exchange; when your account balance is nearly exhausted, the system will automatically close your position. It's too late to regret then. Stop-loss is your only lifeline—it's not about admitting defeat but actively controlling losses.

**What do true experts rely on to make money**

It's not about how accurate your technical analysis is, nor how precisely you can predict the market. It's about how well you manage risk. The traders who survive the longest are all this type: they already know exactly "how much I will lose in the worst-case scenario" before placing an order.

A few bottom-line rules:

First, never risk money that is essential for your daily life.

Second, keep single-loss amounts within 3% of your total funds.

Third, prioritize trading mainstream coins like BTC and ETH, which have relatively stable trends and less bizarre spikes.

Finally, stay away from the crazy market movements during the early morning hours—that volatility can instantly bring you back to reality.

**Final words**

Contract trading is not meant to make you rich overnight; rather, it ruthlessly exposes human weaknesses. If your mind isn't steady enough or your hands are too quick, it can instantly bring you back to your original form.

If you're still a beginner: practice repeatedly on a demo account to master basic operations.

If you've already lost numbingly: stop, take a deep breath, and re-understand the rules before re-entering.

The market won't disappear, but once your principal is gone, it's truly gone for good.