Beware! The Bloody Truth of Contract Trading: You May Never Be Profitable!

To friends playing contracts, I sincerely offer some advice to newcomers: never fantasize about getting rich overnight! First, you need to understand that regardless of the same leverage and margin, when two traders open long and short positions at the same time, most of them will ultimately lose money. The big players take advantage of the greed and fear of retail investors to repeatedly wash the market, and in the end, only a few will profit.

Accurately judging market direction is useless; the big players ignore the rules, which can lead to total loss of your capital. From the moment you decide to trade contracts, you are destined to walk the path of dancing on the edge of a knife, with enormous risks. Many big players did not become rich overnight, but accumulated wealth slowly; do not fantasize about becoming wealthy overnight in contract trading.

The more you invest, the greater the risk; the longer you hold a position, the higher the chance of liquidation. Most importantly, allocate your capital reasonably and set clear goals: making 30% is basic, 50% is advanced, and 100% is the level of top players.

If you want higher returns, the risks will also rise accordingly, requiring strong capital, belief, and luck. I once lost all my capital and came to deeply understand these rules. I hope newcomers can avoid detours, while veterans can just enjoy the show.