Liquidations in contracts happen every day, and many people blame volatile markets, but the real issue is a lack of understanding of leverage.

Leverage multiples are just numbers—the real killer is how much risk you're actually taking on. For example, if you only have 10,000 in hand but open a 30,000 position with 3x leverage—it looks like simple math, but you're already standing on the edge of a cliff. Even a small market fluctuation can wipe your account from full to zero; when the margin call comes, your money is really gone.

Those who survive in the derivatives market understand one thing: this isn't a casino, it's an arena for risk management. The money they make often comes from those who recklessly trade on gut feelings. These survivors share a common trait—they spend most of their time quietly observing, only making a move when they're truly confident in a signal. That's how short-term trading experts operate: stay silent when you should, strike when the time is right.

In contrast, many traders keep trading all day long, only to end up paying tons of fees to the platform while their own capital gets whittled away.

If you want to survive here, the most important thing is restraint. Don't panic when the market is in fear, and know when to pull back when others are getting greedy. Set a bottom line for every loss—don't let any single loss exceed 5% of your total capital. On the flip side, let your profits run when you're making money, don't be too quick to close out and cash in.

Some people equate contracts with gambling, but that's a misunderstanding. Real gambling is betting it all on a hunch. Successful traders rely on discipline and a cold calculation of probabilities. If you go it alone without a plan, you'll fall into countless traps; only by finding the right approach and rhythm can you survive more steadily. Want to break the cycle of frequent losses for good? The core is a mindset shift—turn contract trading into a strict, executable risk management system.