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Contract trading, how many people have fallen here? I've seen too many rush in with full positions and go all-in, only to be wiped out in a single wave of market movement, with accounts wiped clean. Seven years ago, I was the same, entering the market with just over 2000 yuan, not even knowing how to adjust leverage, and after several liquidations, I had to save every penny even for instant noodles. Now, my account is steadily sitting on an eight-figure balance. Along the way, the biggest gain isn't how much I've earned, but understanding a principle — contracts are never a casino; they require discipline and strategy.
Many ask me what my secret is. Actually, it's five points. They sound simple, but very few can truly follow them.
**Stop-loss must have a bottom line**
When I first started, I suffered a big loss. I kept thinking I could hold on until the rebound, but the market simply wouldn't give you that chance. When you reach your stop-loss level, you must exit. Staying alive is more important than anything. This isn't admitting defeat; it's leaving yourself room to continue trading.
**If you keep making mistakes, you must stop**
Sometimes the market just moves chaotically. Forcing trades during such times will only ruin your mindset. I set a rule for myself: after five consecutive wrong trades, I close the software and take a day off. Often, the pitfalls from the previous day are resolved the next. A calm mind is more valuable than any technical indicator.
**Take profits and cash out**
The numbers on the screen are just virtual. My approach is to take at least half of the profit once I earn 500 yuan. Only when the money is in my account is it truly a win. The market can turn against you faster than you can flip a page. Don't expect to keep earning forever.
**Distinguish between trend and consolidation**
In a trending market, moderate leverage can help you ride the waves; but during sideways or choppy markets, leverage becomes a knife that cuts your position. When there's no clear direction, lying flat and waiting is always the best choice.
**Position size is the line between life and death**
This is the most critical point. Never risk more than 10% of your principal on a single position. Going all-in is like forcing yourself to eat ten plates at a buffet — the last plate will definitely make you uncomfortable. Keeping a small position allows you to calmly handle any chaotic market conditions. That's the secret to surviving longer in the contract market.
To sum up: control risk, control position size, control your mindset. These three words are my entire answer from blowing up to reaching eight figures.