As a beginner in trading contracts, the first thing you always ponder is: where is the most comfortable point to take profit?

But those who truly survive in the market have a different mindset.

They always ask themselves: how much can I possibly lose?

To put it simply, taking profit is the icing on the cake; stopping loss is the critical bottom line that can save your life.

I've seen too many people who predict the market direction correctly nine out of ten times, but in the last trade, they fail to set a stop-loss order and end up losing all the profits they previously made. It's not that these people can't make money; the key is that they don't know when to stop.

If you're just starting with contracts, don't rush to study complex indicators or focus on win rates. The most important thing is to set a non-negotiable limit for yourself.

**First, the amount of capital you invest must be within your means.** Don't use all your idle funds; just a small part is enough. Sounds unimpressive? Actually, being able to sit at the trading table consistently already puts you ahead of most people.

**Second, before you start trading each day, you need to have a clear plan.** What's the maximum loss I can tolerate today? Once you set this number, if you reach this limit, decisively close the software and step away from the screen. This isn't cowardice; it's rationality. Those who can control their hands have already succeeded halfway in trading.

**Also, be methodical when placing orders.** Don't always think about going all-in at every opportunity—that's gambling mentality. Spread out your positions, and keep each loss within your acceptable range. Even if you make a wrong judgment, it's just small cuts, not fatal. This way, you can stay calm when making decisions, rather than getting carried away.

At a certain stage, you'll find that even if you experience gains and losses over a long period, your overall trend is upward, and your emotions won't collapse due to market fluctuations. That's when you truly start to "know the game." Once you reach this level, you can gradually adjust your strategy according to market rhythm—no one can stop you.

But there's one red line you must never cross:

Losing money and trying to make it back, or losing and trying to change the rules.

The most frightening thing about contracts is never the market itself, but people's unwillingness to accept defeat.

Remember this: stop-loss isn't about making less money; it's about ensuring you can keep earning tomorrow.