The wave of contract liquidations has never stopped, yet people keep rushing in. Ultimately, many don't really understand what contracts are.

Do you really think that opening a 5x or 10x leverage means you're trading with a 5x position? Imagine this: you have $10,000 in your account, set a maximum loss limit of $500, and then open a position worth $30,000 — on the surface, that's a 5x leverage, but in reality, the risk has skyrocketed to 60x. Many people have no idea about the consequences of such leverage amplification and still feel confident that they are trading safely.

Experienced traders understand that contract trading is fundamentally a risk hedging game, not a gamble of luck. Every bit of profit you make is built on others' liquidations and losses. Therefore, professional traders spend most of their time waiting — waiting for the right opportunity, the right timing, and for the market to move into the right position. Once they decide to act, their goal is precise profit-taking, not reckless messing around.

To survive in this market, anti-human operations often become the dividing line. When the market panics, you must stay especially calm; when others are greedy, you need to be even more cautious. Strict stop-loss execution is non-negotiable, usually limiting losses within 5% of your principal. Once you start making profits, you must decisively tighten your stop-loss to let profits run — a risk-reward ratio of at least 1:2 is necessary to make it worthwhile.

Some people always say, "Aren't contracts just gambling?" — but this judgment is actually backwards. The reason you get liquidated is because you're gambling, while those who can consistently profit are doing so by precisely calculating risks, strictly managing positions, and following discipline. The core methodology isn't something you can easily find on the street; if you want to learn, you need to put in the effort and figure it out yourself.

If you're still placing orders based on feelings, my advice is to rest early and stop staying up late — after all, dreams can be anything. If you want to seriously learn this system, you need to start with basic risk management and position control, gradually building your own trading system step by step.