Watching the contract account go from a few thousand to a few hundred, I've seen many people just shut down their trading software and swear never to touch it again. But the real problem isn't the contract itself—it's the hidden killer in every decision you make.

Rather than saying contracts are gambling, it's more accurate to say most people treat them as gambling. The same tool, some grow steadily, others get wiped out overnight. The difference lies in their understanding of these five traps.

**First Trap: The Temptation of Leverage Multipliers**

50x, 100x leverage sounds enticing—just a 1% move can double your position. But this logic ignores a deadly fact—high leverage essentially shortens your lifespan.

A quick price reversal? Forced liquidation. Breaking support on technical analysis? Liquidation. You think you're making money, but you're actually racing against time, and the track is getting shorter.

My rule is simple: never use more than 5x leverage, even if the opportunity looks "certain." Once, during a pullback, I entered with 3x leverage, earning slowly but holding through two spike attempts. Meanwhile, a friend used 20x—he got liquidated on the first dip.

Most people get it wrong—they think leverage determines how much they earn, but in reality, leverage decides how long you can survive.

**Second Trap: Clinging to Luck and Not Cutting Losses**

"Wait a bit longer, it might bounce back"—this phrase has destroyed too many accounts. In the contract market, a one-minute move can turn your floating profit into a huge loss. Not cutting losses is essentially handing your wealth over to luck.

My approach is: set a stop-loss immediately after opening a position. The stop-loss isn't random; it's placed below key technical points—previous lows, trendlines, or support levels.

Once I once ignored this rule, stubbornly holding onto losses, thinking "let's see what happens." Within ten minutes, half my capital was gone. Since then, I've been completely immune to luck-based thinking.

The true purpose of a stop-loss isn't to avoid losses—since contract trading inherently involves losses—but to prevent losses from spiraling out of control. Managing the worst-case scenario gives you a chance to survive until the next opportunity.

**Third Trap: Following "Experts" on Social Media**

On social media, every day someone promotes their trading record, "100x coins," "sure-thing secrets," with a tone so confident it seems they hold the universe's truth.

But that's the problem—what you see are only their winning trades. No one posts screenshots saying "I got wiped out on this trade." What you're following is survivor bias.

Contracts require your own trading logic. It can be simple, but it must be something you've repeatedly tested yourself. For example, I only trade two scenarios: clear trend reversals and rebounds at key support levels. If it doesn't fit these, I watch the opportunity slip by without regret.

The cost of following others is often higher than you imagine.

**Fourth Trap: Laziness in Position Management**

Many people enter without thinking about how much risk they're willing to take. The result? During small moves, they rush in fully; during big moves, they run out of bullets.

A scientific approach is: only risk 1-3% of your total funds per trade. Even if you lose five or six times in a row, your account won't die. Plus, this method keeps you from emotional breakdowns caused by a single loss.

A steady mindset leads to stable decisions; stable decisions lead to a longer-lasting account.

**Fifth Trap: Not Knowing When to Rest**

After a few consecutive wins, people tend to become overconfident. That's when the highest risk occurs. Or, after a few losses, they desperately try to recover, only to lose more.

My habit is: after reaching my monthly profit goal, I withdraw funds or switch to spot trading, and stop trading contracts altogether. If I have more than three consecutive losses, I pause and check back in a couple of days.

Trading isn't a marathon; it's a series of stages. Knowing when to exit is more important than always staying in.

**A Simple Mindset Summary**

Whether you make money trading contracts ultimately depends on these basic skills: controlling leverage, strict stop-loss, having your own logic, managing position size, and knowing when to rest. There are no mysterious tricks—just consistently doing these small things right. Over time, your account will reflect that.

I've seen too many stories of overnight riches—and how they all ended with a single night of total loss. Those who survive longer and make steady profits are often the most boring people—strictly following their plan, not greedy, not fearful, knowing when to stop and rest.

Your contract account is essentially a mirror of your trading discipline.