Contract trading, for most beginners, can be both an opportunity to get out of the market and a trap that accelerates losses.

I have seen too many people start with just a few thousand yuan, full of dreams of overnight riches, only to be awakened by a liquidation notification within a few days. Then they begin to doubt: am I just not cut out for trading?

Honestly, I used to be the same. Starting with 8,000 yuan, my account was liquidated countless times, and in the later stages, my balance often dropped to just two digits. That period was truly despairing, feeling like all my efforts were just studying.

But I later realized: surviving in the crypto world is not about luck. It’s about the knowledge gained through repeated failures and the discipline forced upon oneself to execute trades. The most important thing to understand is—liquidation is never an accident; it is fundamentally an inevitable result.

Many people think setting stop-losses can guarantee peace of mind, but in reality, that only delays the execution of the account. The real issue is this: the higher the leverage, the risk doesn’t just multiply—it grows exponentially. Using 5x leverage and losing 50% is your principal. But with 20x leverage, encountering the same magnitude of adverse movement means you’re out immediately.

There are also hidden costs—fees, spreads, slippage caused by frequent trading. These seemingly insignificant expenses are like termites eating wood; over time, they can hollow out your principal.

The most heartbreaking math problem is this: if your account loses 90%, to get back to break-even, you don’t just need a 90% gain—you need to multiply your capital by 9. This is no longer about making money; it’s like starting over from scratch. That’s why some people, after a big loss, never recover.

My turnaround came when I found a systematic approach. No exaggeration—BOLL indicator became my weapon. Once I understood its "opening and closing" logic, I could detect trend reversals early, greatly improving entry accuracy and making exits more effective in avoiding sharp drops. During a market rally, using this method, I achieved a 30-fold increase in just one month. It’s not luck, nor some mystical secret; it’s purely the result of system and discipline.

How to read candlestick patterns, how to catch signals, how to grasp the rhythm—these details need to be accumulated through practical experience. But the core point is: contract trading is not about courage or intuition; it’s about logic and system.

If you are still stuck in the vicious cycle of "liquidation → recharge → liquidated again," stop and ask yourself: what kind of game are you really playing? To survive, you must first understand the rules thoroughly. To win, you need to learn how to control the rhythm. Not understanding candlestick charts, frequently reversing trades, relying on guesses? Instead of forcing it, it’s better to calmly reflect on where your trading logic is flawed.